BlackRock CEO Larry Fink has declared that the next 20-25 years will be the "era of India", urging investors to focus on the country's long-term potential for wealth creation and to look beyond short-term market fluctuations. Speaking at a JioBlackRock event in Mumbai, Fink lauded the Narendra Modi administration for digitizing the rupee and transforming commerce across the country, expressing concern that other nations, including the United States, are falling behind in this critical area.

Fink emphasized that India's growth story should be evaluated over a long-term horizon, dismissing the significance of short-term political or market developments. He noted that any impact from a US-India trade deal would be minimal in the long run, with India's foundational strengths allowing it to "leapfrog" ahead, particularly since the advent of the smartphone era and the rollout of 5G technology.

Fink's bullish outlook coincides with his third visit to India, highlighting the country's increasing strategic importance for BlackRock. BlackRock manages about $13 billion in direct Indian exposure for global clients, with approximately 15% of BlackRock's $422 billion in Asian assets invested in India. This commitment is further solidified by BlackRock's joint venture with Jio Financial Services, JioBlackRock, established in July 2023 with a commitment of up to $150 million each to create a digital-first asset management platform for India's expanding investor base.

Echoing Fink's sentiments, Reliance Industries chairman Mukesh Ambani advocated for redirecting Indian household savings into capital markets. Ambani argued that the traditional preference for physical assets like gold has hindered productive wealth creation. He stressed that simplifying access to financial markets is crucial for engaging India's younger generation and unlocking the potential for wealth compounding.

BlackRock's investment strategy in India focuses on high-growth sectors such as technology, infrastructure, financial services, and consumer discretionary, with a commitment to sustainable investing. The firm conducts thorough research and analysis to assess potential for growth, risk, and returns, and is open to diversifying its portfolio as India's economy evolves. BlackRock is also launching Indian rupee-denominated capital market assumptions (CMAs) to better capture India's long-term potential in strategic asset allocations.

BlackRock sees India as a key pillar of its long-term growth strategy, supported by the country's strong domestic foundation and potential for foreign investment. India's GDP is projected to grow at 6.5% in 2025, exceeding global and emerging market averages, driven by demographics and rising productivity. The country's working-age population is expected to increase by over 140 million in the next 20 years, presenting a significant demographic dividend.

While positive about India's prospects, Fink has also cautioned about the potential for wealth concentration due to AI-driven wealth generation, as was seen after the Cold War. He stressed the importance of evolving capitalism to include more people as owners of growth, rather than spectators. BlackRock emphasizes career development for its employees in India and provides opportunities for growth.