Economy & Market Outlook by Mr. Prashant Jain, CIO 3P Investment Managers

Market Resilience: Despite massive foreign selling of $40 billion over the last 18 months , the Indian market has remained remarkably flat, demonstrating a collapse in volatility and the rising dominance of local capital.
The Return Shift: Investors must recalibrate expectations from the historical 15-17% CAGR to a &quot;new normal&quot; of 11-12% , aligning with a nominal GDP growth of 10% and core inflation stabilizing at 2.5-3% .
Structural Economic Shift: India is transitioning from a high-volatility economy to one of the most stable globally, driven by a current account deficit (CAD) drop from 3% to below 1% due to reduced oil dependency and booming Global Capability Centers (GCCs).
Manufacturing Resurgence: Bolstered by PLI schemes , India is expected to assemble 25% of global Apple iPhones next year, signaling a major leap in electronics manufacturing capability.
Risk Mitigation: While AI poses a potential threat to the 7 million IT service jobs, the broader economy is shielded by a rising blue-collar middle class and the expansion of the 2,000+ GCCs currently operational in India.
Asset Allocation: A strategic shift from Small/Midcaps (currently overcrowded and overvalued) to Large Caps is advised to capture the next leg of steady, lower-volatility growth..

Economy & Market Outlook by Mr. Prashant Jain, CIO 3P Investment Managers | MFD Galaxy · Nuggets

Data Point	Value	Context	Timestamp
Foreign Equity Outflows	$40 billion	Total offloaded by foreign investors over the last 15-18 months.	[00:00:20](https://www.youtube.com/watch?v=-K58QbkJk0A&t=0h0m20s)
Historic Equity Expected Return	15% to 17%	Past consensus on Sensex/Nifty annual compounding.	[00:02:07](https://www.youtube.com/watch?v=-K58QbkJk0A&t=0h2m7s)
Future Equity Expected Return	11% to 12%	Projected future market compounding due to lower inflation.	[00:02:18](https://www.youtube.com/watch?v=-K58QbkJk0A&t=0h2m18s)

Economy & Market Outlook by Mr. Prashant Jain, CIO 3P Investment Managers | MFD Galaxy