Chairman Warren Buffett, left, at the Berkshire Hathaway Inc. annual shareholders’ meeting in Omaha, Nebraska, U.S., on May 3, 2024.
| Photo Credit: REUTERS

Billionaire investor Warren Buffett said that the Indian market has “unexplored” opportunities which his conglomerate holding company, Berkshire Hathaway, would like to explore “in the future”.

Mr. Buffett’s remarks came at Berkshire’s annual meeting on May 3 when Rajeev Agarwal of DoorDarshi Advisors, a U.S.-based hedge fund that invests in Indian equities, asked him about the possibility of Berkshire exploring in India, the world’s fifth-largest economy.

“It is a very good question. I am sure there are loads of opportunities in countries like India,” he said.

“The question, however, is whether we have any advantage or insights into those businesses in India or any contacts that will make possible transactions that Berkshire would like to participate in. That is something a more energetic management at Berkshire could pursue,” the co-founder, chairman and CEO of Berkshire Hathaway said.

Mr. Buffett, 93, said Berkshire has a great reputation around the world. He said, his Japanese experience has been fascinating enough.

“There may be an unexplored or an unattended opportunity…but that may be something in the future,” he said about India.

Mr. Buffett said the question is if Berkshire has some kind of advantage in pursuing those unattended opportunities, particularly against people who are managing other people’s money and getting paid based on assets.

During a Question and Answer session, Mr. Buffett answered several questions related to some of the key investment decisions taken by Berkshire Hathway lately.

Decidedly reducing stake in Apple was one of the key topics. Mr. Buffett clarified that it had nothing to do with the long-term view on the stock and Apple will probably remain one of their largest holdings despite the recent slowdown.

He also told shareholders that Vice Chairmen Greg Abel and Ajit Jain have proven themselves the right people to lead Berkshire after he departs.

New Delhi:

India’s GDP is likely to touch $5 trillion over the next four years and will overtake Japan and Germany to become the third largest economy by 2027, Jefferies said on Wednesday.

In a note, the investment banking company said that India will become nearly a $10 trillion market by 2030 and that it will be “impossible” for large global investors to ignore the country.

“From the ninth largest economy a decade back, India has now become the 5th largest economy with a nominal GDP of $3.4 trillion. On a PPP basis, the GDP is already much higher at $13.2 trillion, making it the third largest economy in the world,” the Jefferies said.

It said that India’s GDP grew even as there was an impact of several major reforms like bankruptcy law, GST implementation, Real Estate Regulation Act (RERA) and demonetization.

These reforms were “good” for the long-term but “adversely impacted” near-term growth, it added.

“India is not only projected to grow at 6% over the next five years, the country will also be a standout in a world where most large economies are expected to see their growth rates decline.

“We believe that rising growth outperformance, particularly against the developed world, should help India climb up the world’s GDP ranks quickly to the third spot before this decade ends,” Jefferies said.

India’s Market Cap To Become $10 Trillion By 2030

Jefferies said that it believes that Indian equity markets will continue to deliver 8%-10% dollar returns over the next five to seven years.

“Structural domestic flows arising from shift of savings to equities and potential listing of large unicorn in India can drive the market cap past $10 trillion by 2030,” the company said.

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“Even though India is fifth largest in terms of market cap, its ranking in the Bloomberg World Index is eighth with a weight of just 2.0% which, in our view, means there is tremendous scope for foreign investors to increase investment into the fastest growing country in the world,” it added.

A rise in country weight in a global fund could make Indian stocks a must-have for a much more diverse set of equity investors, Jefferies said.