According to ET Now, Motilal Oswal Group's Chairman Raamdeo Agrawal believes India's next phase of wealth creation will emerge from steadily expanding profit pools rather than sudden disruptions. Speaking on market volatility and long-term opportunities, Agrawal emphasized that India's growth trajectory remains predictable despite geopolitical tensions and periodic shocks. Addressing concerns around geopolitical risks, including the ongoing conflict in West Asia, the veteran investor stated that such developments do not fundamentally alter India's economic direction.
As reported by ET Now, Agrawal highlighted that profit creation will continue across sectors, with financials remaining the strongest engine of earnings growth. He noted that the current profit pool from banks alone is substantial, with SBI contributing approximately ₹1 lakh crore to the total financial sector earnings. Agrawal projected that this profit pool will continue growing at 10-15% annually, underlining the structural nature of India's credit growth story. The total financial sector profits are estimated at ₹3-4 lakh crore currently, with significant room for expansion.
According to ET Now, Agrawal identified digital lending as a major long-term opportunity within the financial sector, despite its current small scale. He explained that while digital lending today represents a ₹1 lakh crore book, it has significant growth potential. Agrawal drew a contrast between scale and growth rates, noting that smaller segments often generate disproportionate expansion - ₹5 lakh crore becoming ₹10 lakh crore compared to digital lending's potential to grow from ₹100 crore to ₹1 lakh crore. This represents a structural shift in how lending services are delivered in the Indian market.
As reported by ET Now, Agrawal highlighted the automobile sector as another area where profit pools are likely to expand significantly over time. He pointed to India's current auto production of approximately 5 million cars and projected that in fifteen years' time, production should reach 20 million cars. Agrawal noted robust demand trends with robust inflows from two-wheelers to four-wheelers as entry-level cars have become cheaper. While acknowledging that automobile sector profits may still take time to peak, he remained confident about the long-term opportunity, stating that profit pools of the car industry will explode.
According to ET Now, Agrawal struck a pragmatic note on emerging technologies, particularly artificial intelligence. He noted that currently, there are no pure AI companies in the listed space with zero profits, emphasizing that this situation will not persist indefinitely. Agrawal stated that new profit pools will emerge in AI within ten years, representing a significant shift from the current landscape where AI companies operate at a loss. This projection suggests that India's technology sector will mature and contribute meaningfully to the country's overall profit pools in the coming decade.
