India has the potential to sustain annual economic growth of around 8% over the next five years on the back of structural domestic drivers, even as global uncertainties and inflationary pressures persist, according to M&M Group CEO and MD Anish Shah.

Consumption remains a central pillar. India’s demographic profile, with a median age of about 28.8 years, significantly lower than that of major economies such as the US and China, is expected to support sustained demand. 

Speaking after the company’s FY26 results, Shah said such a growth trajectory could see India add close to $3 trillion to its GDP, compared with about $2.4 trillion if growth moderates to around 6.4%. 

Rising per capita income and a growing base of affluent and middle-income consumers are likely to boost spending across sectors, such as automotive, and in rural markets.

Infrastructure expansion is another key driver. Shah noted the pace of execution, with India adding roughly 40 km of roads per day and averaging one airport per month over the past five years. This, along with rapid progress in rail infra and digital infrastructure, is expected to strengthen the foundation for long-term economic growth. 

Policy reforms and trade agreements are also expected to play an increasingly important role. India has signed five FTAs covering 38 countries, which Shah said could open up new export opportunities and improve global competitiveness for domestic companies, even as they face higher levels of competition.

At the same time, Shah cautioned that near-term headwinds remain, particularly from inflation and geopolitical developments. These factors could create intermittent disruptions, but are unlikely to derail the broader trajectory, he said.

For Mahindra, which has exposure across automotive, farm equipment, financial services and emerging businesses, the macro outlook provides a supportive backdrop for growth. The company is positioning itself to leverage this environment, even as it continues to build resilience against external shocks.

(With inputs from Kiran Murali)