New Delhi, Dec 18 India’s capital markets delivered the highest total shareholder returns globally over the last decade, averaging 15.2 per cent annually between 2015 and 2025, outperforming developed and emerging markets alike, a report said on Thursday.
The report from Boston Consulting Group (BCG) said that India’s average annual Total Shareholder Return (TSR) of 15.2 per cent outpaced the S&P 500 at 13.6 per cent, the EU350 at 7 per cent, and major Asia‑Pacific markets, including Japan, China and Singapore.
India’s TSR outperformance was structurally healthier and was driven not just by revenue growth, but also by margin improvement and valuation multiple expansion, it noted.
The report highlighted that sector rotation toward industrials, green energy, metals & mining, and technology has occurred, with these sectors leading due to PLI-led manufacturing, infrastructure investments, and scale-up of digital-led businesses.
Further, BCG noted superior performance by family‑owned businesses, delivering 20.7 per cent average TSR. The performance is due to a long-term investment mindset and strategic diversification appetite, which have made them the compounding value creators of India’s economy.
"India’s capital markets are no longer just riding macro momentum. They are evolving rapidly with sharper sectoral pivots, stronger capital stewardship, and tighter alignment between corporate leadership actions and investor expectations," said Kanchan Samtani, leader of BCG’s Corporate Finance & Strategy Practice for the Asia‑Pacific region.
Nearly 75 per cent of top-quartile TSR performers delivered both revenue growth and margin expansion, signalling capital-efficient, profitable pathways to building scale.
The next wave of value creation will require sharper strategic focus, increased capital allocation discipline, and greater transparency, according to Akshay Kohli, leader of BCG’s Corporate Finance & Strategy Practice in India. Companies that embed AI into their operating models will define the next decade of capital markets leadership, the report noted.
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