A statement from Morgan Stanley reported that a policy shift promoting investment, demographic advantages, and public digital infrastructure would catapult India to the world’s third-largest economy by 2027. The article, Why This Is India’s Decade, discusses the trends and regulations that will affect the economy of the nation during the next ten years.
According to the report, India’s GDP is expected to double over the next decade, from $3.4 trillion to $8.5 trillion. India will contribute more than $400 billion to its GDP each year, a figure only surpassed by the United States and China according to the study.
It also predicted that India’s GDP would rise from $3.4 trillion to $8.5 trillion during the next ten years.
According to Morgan Stanley, India will contribute one-fifth of the growth in the world economy over the next ten years. The international investment banks also agreed that the country’s economy will increase mostly as a result of its expanding size and scope.
Morgan Stanley is a multinational investment management and financial services firm located in Midtown Manhattan, New York City, at 1585 Broadway. The firm’s client includes corporations, governments, institutions, and individuals, and it has offices in over 41 countries and over 75,000 workers. Morgan Stanley was rated 61st on the 2021 Fortune 500 ranking of the top firms in the United States by total revenue.
J.P. Morgan & Co. partners Henry Sturgis Morgan and William D. Morgan established the first Morgan Stanley on September 16, 1935. (a grandson of J.P. Morgan), Harold Stanley, and others in response to the Glass-Steagall Act, which forced the separation of American commercial and investment banking operations. In its first year, the company had a 24% market share (US$1.1 billion) in the public sector.
According to Morgan Stanley’s senior Asia economist Chetan Ahya, “India will contribute more than $400 billion to its GDP per year, a figure only equalled by the United States and China.”
Since the early days of the Internet, companies around the world have outsourced services such as software development, customer care, and business process outsourcing to India. Tighter global labour markets and the growth of remote work patterns, on the other hand, are giving new life to the image of India as the world’s back office.
According to Desai in a post-Covid atmosphere, CEOs are more comfortable with working from home and India. He predicts that during the next decade, the number of individuals hired in India for work outside the country will at least quadruple, reaching more than 11 million, as global outsourcing spending rises from $180 billion per year to about $500 billion by 2030.
India is also on track to become the world’s factory, thanks to corporate tax cuts, investment incentives, and infrastructure spending, which are driving capital investments in manufacturing.
Consumers will most likely have greater disposable income. Over the next decade, India’s income distribution might flip, causing overall spending to more than quadruple from $2 trillion in 2022 to $4.9 trillion by the end of the decade.
According to the analysis, non-grocery retail may benefit the most from this spending story, including fashion and accessories, leisure and recreation, and household products and services, among other categories.
The Bombay Stock Exchange (BSE) has the potential to increase by 11% every year. According to the estimate, the Mcap might reach $10 trillion in the coming decade.
With business tax cuts, investment incentives, and infrastructure development, India is set to serve as the world’s factory, according to the research.
According to the analysis, manufacturing’s proportion of GDP in India might rise from 15.6 percent to 21 percent by 2031, more than doubling India’s export market share.
