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Highlights
- Y Rama Rao said patient capital is essential for funding long-term infrastructure, manufacturing growth, and social development in India.
- India now has strong domestic savings and institutional assets that can support large-scale nation-building investments.
- Achieving a $10 trillion economy by 2035 will require stable regulation, trust in governance, and sustained long-term capital flows.
At the ET NOW Times Group Global Business Summit Day 2, Spark Capital Senior Managing Director and CEO Y Rama Rao delivered a welcome address focused on one central theme, the importance of patient, long-term capital in shaping India’s economic future and enabling sustainable nation-building.
Opening his remarks, Rao thanked the Times Group for providing a platform to discuss long-term investing and its role in driving India toward its Vision 2047 goals. He emphasised that nation-building requires disciplined capital that compounds steadily over time rather than chasing quick returns or short-term trends.
Why patient capital mattersRao cited the example of Norway’s sovereign wealth fund, which has crossed the USD 2 trillion mark after decades of disciplined investing with an average annual return of about 6 percent. The lesson, according to him, is clear, consistent returns over long periods can create enormous wealth and provide stable funding for large-scale infrastructure and development.
He said that patient capital brings two major advantages: long investment horizons and reasonable return expectations. These characteristics make it suitable for funding critical areas such as digital infrastructure, physical assets, manufacturing capacity and social development initiatives.
Global examples of long-term transformation
Drawing comparisons with other economies, Rao pointed out how countries like South Korea, Singapore and Japan focused on long-term structural priorities during key decades of transformation.
South Korea invested heavily in universal education in the 1960s, Singapore built world-class infrastructure in the 1970s, and Japan strengthened universal healthcare in the post-war period. These investments, he said, created lasting economic and social change that transformed their national trajectories.
According to Rao, India now stands at a similar turning point where the next decade could lay the foundation for a century of progress.
Three pillars for India’s growth
Referring to the broader vision outlined by national leadership, Rao highlighted three areas that require sustained capital flows:
- Continuous investment in digital and physical infrastructure
- Upgrading manufacturing capabilities to global standards to leverage international trade opportunities
- Supporting poverty reduction and strengthening the emerging middle class
He stressed that each of these areas demands long-term funding rather than short-term speculative flows.
India’s growing domestic capital strengthRao noted that India’s economic position has changed dramatically since the 1990s reforms era, when the country depended heavily on foreign capital. Today, domestic savings and institutional assets offer a much stronger foundation.
He pointed out that Indian households generate roughly USD 300–400 billion in annual savings, while assets held in institutions such as retirement funds, insurance and mutual funds exceed $1 trillion. This pool of capital, if channelled efficiently, can support ambitious infrastructure and growth investments.
Building resilience over efficiency
A key message of Rao’s speech was the need to move beyond excessive focus on quarterly returns and high ROE metrics. He argued that national development requires creating buffers and 'anti-fragile' systems capable of handling future crises, lessons reinforced by the pandemic and geopolitical disruptions.
Investments that may appear inefficient in the short term can prove crucial for long-term stability, he said, adding that patient capital understands this trade-off better than momentum-driven investment.
Road to a $10 trillion economy
Rao said India’s ambition of becoming a $10 trillion economy by 2035 will require an additional $300–400 billion in annual investments toward fixed assets. Achieving this goal, he argued, depends on building trust-based governance, predictable regulation and strong contract enforcement — factors that attract long-term investors.
A call for long-term thinking
Concluding his address, Rao urged entrepreneurs, investors and policymakers to ask themselves whether they are building for the next quarter or for the next few decades. He contrasted 'glamorous' short-term capital with disciplined, stable funding that quietly compounds over time.
His message was clear: India already has the markets, the ecosystem and the capital base needed to drive long-term transformation. The challenge now lies in channeling that capital patiently and strategically to create lasting economic change.
Rao ended by highlighting an ancient principle rooted in Indian thought, that steady, long-term accumulation eventually outperforms spectacular short-term gains, calling on stakeholders to adopt this mindset as India moves toward its Viksit Bharat 2047 vision.
English (US) ·