India’s next Decade will Resemble that of China from 2007-1: Morgan Stanley Report

New Delhi (India), June 01, 2023: Morgan Stanley’s most recent research states that major developments have occurred in India since 2014, with the country gaining positions in the global order. It is expected that in the following decade, India would emerge as a key engine for Asia, accounting for one-fifth of world growth.

This is a significant boost for the Narendra Modi administration’s record.

However, the paper warns of a potential danger — “a fragmented general election outcome in 2024” — that could have an influence on its estimates. The BJP and the Centre are anticipated to use this report to highlight how the country has changed under PM Modi’s leadership and the importance of maintaining him in office.

Report said, “We run into significant skepticism about India, particularly with overseas investors, who say that India has not delivered its potential (despite its being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich. However, such a view ignores the significant changes that have taken place in India, especially since 2014.”

According to the report, India will account for one-fifth of global growth by the end of this decade. “The next decade in India will be similar to the 2007-11 decade in China.” The GDP and Productivity Growth differentials would shift in India’s favour.

Morgan Stanley forecasts tremendous growth in financial services in India through 2032, as well as an energy boom and an increase in discretionary spending.