MUMBAI: India is increasingly becoming central to the global investment landscape as mega forces that reshape economies and markets, like demographic change, digitalisation, energy transition and global supply chain realignment combine to bring in long-term changes for the high growth economy, a report by BlackRock Investment Institute has said.

The authors of the report said that they are neutral on Indian stocks in the short term but advocate for “above-benchmark allocations to Indian equities within strategic portfolios with investment horizons of five years as (India’s) economic transformation unfolds.” They feel India equities “aren’t immune to global risk-off episodes, yet over the long-term, we see compelling overlaps between India’s development priorities” and BlackRock arm’s global investment themes.The BlackRock Investment Institute’s 2025 Midyear Global Outlook said that India’s scale, expanding digital infrastructure and demographic profile now place the country at the heart of technological adoption. “Relatively stable policy and rising domestic demand have drawn strong investor interest, even as equity valuations have moved higher. India faces external risks like any open economy, but its long-term case is compelling.“