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The market capitalization of the Indian Tata Group has reached $365 billion, surpassing the estimated Gross Domestic Product (GDP) of Pakistan, which stands at almost $341 billion according to the International Monetary Fund (IMF), Indian media reported.
This financial achievement comes on the heels of significant returns generated by various companies within the conglomerate over the past year.
A substantial portion of the Tata Group’s market value increase can be attributed to impressive returns from several companies, including Tata Motors and Trent, alongside robust rallies in Titan, Tata Consultancy Services (TCS), and Tata Power. TCS alone, valued at about Rs 15 lakh crore or $170 billion, not only holds the position as India’s second-largest company but is roughly half the size of Pakistan’s entire economy.
In contrast, Pakistan’s GDP recorded a growth of 6.1% in FY22, 5.8% in FY21, and is estimated to have contracted in FY23, partly due to the significant damage caused by floods, amounting to billions of dollars. The country faces challenges with external debt and liabilities totaling $125 billion, aiming to meet $25 billion of external debt payments starting July. Additionally, Pakistan’s $3 billion program with the IMF is concluding in March, while foreign exchange reserves stand at $8 billion.
Among the Tata companies, at least 8, including Tata Motors, Trent, and Tata Consultancy Services (TCS), have more than doubled their wealth in the past year, contributing to the overall growth in the Tata Group’s market value. Notably, Tata Chemicals is the only one that has experienced a decline in wealth, down 5% in the last 12 months.
Furthermore, considering the estimated market value of unlisted Tata companies such as Tata Sons, Tata Capital, Tata Play, Tata Advanced Systems, and the airlines business (Air India and Vistara), the collective strength of the Tata Group could potentially increase by another $160-170 billion, if not more, highlighting the extensive impact and reach of the conglomerate in the economic landscape.