Motilal Oswal Financial Services (MOFSL / “MoSL”)’s 30th Annual Wealth Creation Study (2020–2025), published in December 2025, frames India as entering what it calls a Multi-Trillion Dollar (MTD) era,a sustained compounding phase in which GDP, corporate profits and household financial wealth rise together over the next 17 years. The study’s central, headline claim is that India’s dollar GDP could quadruple from roughly $4 trillion in 2025 to $16+ trillion by 2042, meaning GDP would be about $12 trillion higher than today’s level over that window,a structural expansion that underpins the report’s optimism about long-term wealth creation.

What the numbers say

MOFSL documents two linked empirical points that drive its outlook. First, India’s top 100 listed companies created an all-time high ₹148 trillion (INR 148 trillion) of shareholder wealth over 2020–2025, a pace of creation the study interprets as evidence that a deeper, broader equity cycle is already under way. Second, using an assumed long-run dollar GDP CAGR of about 9%, the report models India’s GDP path out to 2042 and finds the cumulative saving and investment pool,and the overall size of the economy,would expand dramatically, creating a large base for future corporate growth and equity value creation.

Why MOFSL is bullish — the structural drivers

MOFSL’s thesis rests on several mutually reinforcing structural trends:

• Financialisation — more households investing in formal financial assets (equities, mutual funds, insurance, pensions) increases capital available to companies and raises the price multiple investors are willing to pay for high-quality growth. This deepening of financial markets magnifies wealth effects when incomes rise.

• Rising per-capita incomes & demographics — young population, rising urbanisation and faster productivity imply sustained consumption and investment demand; MOFSL’s modelling assumes these will support the multi-decade growth trajectory.

• Sectoral tailwinds — MOFSL highlights banking/financials, telecom, capital goods, autos, healthcare, and certain consumer categories as natural beneficiaries of a larger, wealthier economy. The study also identifies a set of stocks and sectors that,if their earnings and market access scale with the economy,could become large contributors to future wealth creation.

• A savings tsunami — the report projects cumulative gross domestic savings rising markedly as the economy grows, which in turn fuels credit growth, capex and corporate expansion. This amplifies the supply of investible capital for long-term compounders.

What a “$12 trillion boost” means (and what it doesn’t)

When MOFSL says GDP will be “$12 trillion higher” 17 years out, it’s not forecasting an immediate cash windfall arriving to households overnight,it is projecting the difference between two GDP levels (2025 and 2042) under an assumed long-run growth rate. Practically, it implies:

• Many industries will scale up in absolute size, creating more headline large-cap companies and more opportunities for mid-caps to become mega-caps.
• Aggregate corporate profits and market capitalisation can expand many-fold, enabling persistent wealth creation for shareholders who own the right businesses.
• Household and institutional savings will have much larger pools to allocate,meaning greater depth for capital markets and a potentially smoother financing environment for long-term projects.

Risks and caveats

The MOFSL scenario is conditional, not predetermined. Key risks include:

• Growth misses: sustaining ~9% dollar-GDP growth for 17 years is ambitious; it depends on sustained productivity gains, investment, and a benign external environment. A slower pace materially reduces the headline $12 trillion number.
• Valuation and timing risk: if equity valuations re-rate down while earnings take time to catch up, investor returns can lag even as the economy expands.
• Macro shocks: global recessions, commodity shocks, aggressive monetary tightening, or sharp currency depreciation can interrupt the compounding cycle.
• Policy & execution: infrastructure, land/labour reforms, banking system health, and governance at the corporate and public level will determine how much of the theoretical opportunity converts into realized wealth.
• Concentration risk: much of past wealth creation has come from a relatively small set of companies/sectors; a truly broad-based wealth boom requires many more domestic firms to scale successfully.

Investment and policy implications (brief)

For investors and policymakers, the MOFSL study suggests a few practical takeaways:

• Long-horizon orientation: the biggest gains in a compounding economy accrue to patient capital that can identify durable compounders and hold through episodic volatility.
• Diversify across structural themes: financial services, telecom, consumer, capital goods and healthcare are natural places to start, but emphasis should be on business quality (ROE, cash generation, competitive moat).
• Deepen domestic capital markets: regulators and market participants should continue efforts to broaden retail participation, deepen bond and derivative markets, and improve corporate governance to ensure that the rise in economic size translates into broad-based wealth creation.

Conclusion

MOFSL’s 30th Wealth Creation Study paints a compelling, quantitatively framed vision: if the structural drivers it identifies hold, India can add roughly $12 trillion of GDP over the next 17 years and sustain a multi-trillion-dollar wealth creation cycle that profoundly reshapes equities, corporate size and household wealth. The thesis is powerful and actionable,but it is also conditional: realization depends on policy choices, execution, macro stability and the patience of investors. For those with a long time horizon and disciplined selection criteria, the study argues the reward for staying invested in quality compounders could be large.