New Delhi : Despite facing political turmoil and international sanctions, the Indian stock market has outperformed even famous investment firm like Berkshire Hathaway over the last 25 years. A report by Singapore-based asset management company Helios said that Indian stocks included in the Nifty 500 index generated an annual return of 12.56 per cent per annum in dollar terms as compared to 9.52 per cent of famous investor Warren Buffett's Berkshire Hathaway.

This impressive performance of the Indian stock market highlights the potential of equities as an attractive investment avenue for discerning investors. According to stock market experts, the combination of young demographics, growing urbanisation and ongoing reforms position India as an attractive investment destination. The report said that despite facing several crises and volatility, India has performed well over the long term.

There are many crises in the economic scenario

The report said that over the last 25 years (from July 31, 1999 to July 31, 2024), the Indian equity market index has given higher returns than the returns earned by investing in Berkshire Hathaway shares.

The report also said that India's economic landscape has seen several crises, including eight coalition governments, three changes of government between 1996 and 1998, a government that lasted only 13 days, US sanctions following the May 1998 nuclear tests followed by the Kargil war in 1999 and several global events, yet the country's equity market has consistently demonstrated resilience and outperformance.

From the compulsions of coalition governments and market shocks to international sanctions and terrorist attacks, India has weathered many storms while maintaining its growth momentum.

A test of the strength of the Indian economy

Historically, India has faced significant challenges including the Asian crisis in 1997, the Russian crisis in 2004 and the global financial crisis in 1998 and 2008. Each of these events tested the resilience of the Indian economy and the markets bounced back, demonstrating a remarkable ability to recover.

For example, despite a 17 per cent market drop in 2004 due to a sudden change in government, the long-term outlook for the economy remained positive as investors recognised the inherent potential of the Indian economy. India performed well despite crises, events and volatility, the report said.

The period from 2011 to 2015 saw many challenges such as corruption scandals and frequent droughts. However, these crises did not reduce investor confidence. The report says that despite facing many crises and instability, India has performed well in the long term.

According to stock market experts, the combination of young demographics, increasing urbanisation and ongoing reforms positions India as an attractive investment destination, capable of addressing challenges while unlocking significant growth opportunities.