BlackRock CEO Larry Fink has recently emphasized the importance of boosting capital markets in India to ensure that its citizens can fully benefit from the country's economic expansion. Speaking at a Jio BlackRock event in Mumbai on Wednesday, Fink projected that India's GDP will grow at an impressive rate of 8-10% annually over the next decade, heralding an "era of India". He urged Indian citizens to shift their investment focus from traditional bank deposits to the capital markets, drawing parallels with the United States, where capital market investments have yielded greater benefits through compounding.

Fink's message centers on the idea that broader participation in the capital markets is essential for inclusive growth. He observed that India has traditionally been a nation of savers, with substantial investments in gold and silver, estimating that Indians invested over USD 60 billion in gold and USD 15 billion in silver last year. He and Reliance Industries Chairman Mukesh Ambani see a significant opportunity for Jio BlackRock to channel these savings into the capital markets by building trust and making the process simple and transparent for everyday investors.

Fink also lauded the Modi government's efforts to digitize the rupee and modernize financial systems, recognizing these initiatives as game-changers for commerce and financial inclusion. He pointed out that India's ability to deploy technology at scale has placed it ahead of many developed nations, including the United States, and cautioned that countries failing to embrace digitization risk falling behind in the global economy. He also mentioned India's intellectual capital and its effective utilization of technology to transform various sectors.

Highlighting the potential of artificial intelligence, Fink countered the notion of an "AI bubble," arguing that the real risk lies in underinvestment. He anticipates that AI will drive innovation in areas such as drug development and energy, while also boosting productivity in economies facing deficits. Ambani echoed this sentiment, emphasizing AI's crucial role in achieving inclusive scale for India.

Fink stressed that India's progress should be evaluated from a long-term perspective, rather than being swayed by short-term market fluctuations or political events. He believes that the widespread adoption of smartphones, the expansion of 5G networks, and the proliferation of digital platforms since 2012 have fundamentally reshaped Indian society and business. Fink's long-term view aligns with Ambani's vision of building energy self-sufficiency, robust physical infrastructure, and a "country-scale intelligence infrastructure" reaching every village over the next two decades.