With Market capitalization at $365 billion, Tata Group has outsized in the last one year giving massive returns. The market value of the conglomerate has outmuscled the entire economy of Pakistan. The market capitalization of Indias one of the largest businesses stood at Rs 30.3 lakh crore while IMF estimates Pakistans GDP to be worth around $341 billion. Valued at $170 billion, Tata Consultancy Services which is Indias second largest company- is roughly half the size of Pakistans economy.Performance of listed Tata CompaniesAccording to the most recent numbers, Tata Groups market value came from multi bagger returns in Tata Motors and Trent, besides the healthy rally seen in Titan, TCS, and Tata Power in the last one year. Along with this, TRF, Trent, Benaras Hotels, Tata Investment Corporation, Tata Motors, Automobile Corporation of Goa, and Artson Engineering are the recently companies that have more than doubled wealth in the last one year. This list doesnt take into account unlisted companies worth a few billion dollars from Indias largest business house.However, data from ACE Equity, shows that the only one having eroded wealth in the last 12 months is Tata Chemicals which is down 5% in one year.Pakistans crisisIndia, which has a GDP of over $3.7 billion and is 11 times larger than Pakistan, is expected to pass Germany and Japan to become the third-largest economy by FY28. India currently has the fifth-largest economy.Conversely, Pakistans GDP, which increased by 6.1% in FY22 and 5.8% in FY21, is predicted to have shrunk in FY23 as a result of significant flooding that resulted in billion-dollar losses.According to the sources, the nation is reportedly sitting on $125 billion in foreign debt and liabilities, and it is running out of time to locate the $25 billion in external debt payments that are due in July. Next month marks the end of an additional $3 billion International Monetary Fund (IMF) program.With only about $8 billion in foreign exchange reserves, Pakistan can hardly afford to buy necessities for two months. Credit rating agencies are concerned that the governments revenue for this year would be nearly entirely consumed by interest payments on its debt, as the countrys debt-to-GDP ratio is already over 70%.
