Tata Group's market capitalization now surpasses the entire economy of Pakistan, with several of its companies delivering significant returns over the past year. The conglomerate's market cap stands at $365 billion, exceeding the IMF's estimated GDP of Pakistan at almost $341 billion. Notably, Tata Consultancy Services (TCS), valued at $170 billion, which is India's second-largest company, is roughly half the size of Pakistan's economy.
Pakistan's GDP grew by 6.1% in FY22 and 5.8% in FY21 but is estimated to have contracted in FY23, partly due to the heavy damage caused by floods, amounting to billions of dollars. The country faces challenges with external debt and liabilities totaling $125 billion, with $25 billion in external debt payments due starting in July. Furthermore, Pakistan's $3 billion program with the International Monetary Fund (IMF) is set to end in March, and its foreign exchange reserves stand at $8 billion.
The surge in Tata Group's market cap can be attributed to strong performances from companies such as Tata Motors, Trent, Titan, TCS, and Tata Power over the past year. At least 8 Tata companies have more than doubled their wealth during this period, including TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering. Additionally, Tata Capital, expected to launch its IPO next year, boasts a market value of ₹2.7 lakh crore.
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