When we look at the history of stock market performance across the world, the last 30 years have given us some very important insights. A fresh study has compared the annualized stock market returns of 14 major countries. The results are presented in both local currency and US dollar terms, giving us a fair and equal comparison. (see the image below)
Many people often argue that Indian stock markets have only gone up because of rupee devaluation. But when we look at the US dollar–based returns, the picture becomes much clearer. These numbers are “like to like” comparisons and show the true performance of each market without the effect of currency.
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India Among Top Performers Globally
The study shows that in US dollar terms, the Indian stock market delivered an annualized return of 13.5% over the last 30 years. This puts India at the very top of the list, along with Taiwan and the United States. In fact, no other country apart from these three has been able to generate double-digit annualized returns during this period.
The countries included in the study are: India, Taiwan, US, Australia, Canada, Germany, Netherlands, France, UK, Switzerland, Hong Kong, Italy, Spain, and Japan. Among them, India clearly stands out as one of the best long-term performers.
Volatility Comes With Growth
Of course, high returns have come with higher risks. The Indian stock market showed an annual volatility of 25%, which is among the highest on the list. However, when compared with other markets that had volatility levels of 19–20% on average, the difference is not very wide. Investors who stayed patient were rewarded with strong compounding over three decades.
A Unique Opportunity for Indian Investors
For people investing in India, the last 30 years have been a period of exceptional growth. Unlike many developed markets such as Japan, UK, or France where returns have slowed down due to market maturity, India is still in a strong growth phase. This means new investors in India have access to opportunities that are no longer available in many other parts of the world.
Looking ahead, there is a fair chance that the next 10–20 years could also bring strong growth. India’s economy, corporate earnings, and expanding investor base all support this view.
Final Thoughts
In global dollar terms, India’s stock market has been one of the best wealth creators in the last three decades. With strong fundamentals and growth potential, the future also looks promising. For investors, staying invested in India could continue to be a rewarding decision.
