India needs 18% annual dollar growth to reach $20 tn by 2036

India's economy must grow at roughly 18 per cent annually in dollar terms to reach $20 trillion by 2036, says a report by domestic brokerage Equirus Securities. The target would require the economy to expand about 5.5 times from its current size of around $3.7 trillion. The Business Line adds that achieving this would also need underlying rupee growth of about 14.2 per cent and sustained annual rupee appreciation of 3-3.6 per cent.

Equirus said India's corporate bond market, at just 18 per cent of GDP, could unlock an additional Rs 54 trillion in financing if it matched China's scale. The brokerage has called for tax parity between bonds and equities, and for reforms such as abolishing advance tax and rationalising securities transaction taxes. The report also outlined a 20-step agenda spanning capital markets, services and urban governance, estimating net gains of Rs 4.5 trillion annually from the package.

For equity markets, Equirus CEO Vishad Turakhia said domestic institutional investors have become a stabilising force, but that foreign flows remain crucial given a heavy primary issuance pipeline. He said the next 45 days would be important for monsoon and festive demand, while a sustained pickup in credit growth and private capex could provide further support.