India to become 3rd largest economy by 2027:Morgan Stanley

Morgan Stanley has forecast that India will be home to the third-largest stock market in the world by 2030. Three megatrends--global offshoring, digitalisation, and energy transition--are setting the scene for unprecedented economic growth in the country of more than one billion people, Morgan Stanley said in a report. "India's gross domestic product (GDP) could more than double from $3.5 trillion today to surpass $7.5 trillion by 2031. Its share of global exports could also double over that period, while the BSE could deliver 11 per cent annual growth, reaching a market capitalisation of $10 trillion in the coming decade," said the report titled 'India's Impending Economic Boom'..It said that bolstered by investments it has made in technology and energy, India is set to surpass Japan and Germany to become the world's third-largest economy by 2027.

Stating that India is gaining power in the world order, Ridham Desai, Morgan Stanley's Chief Equity Strategist for India, noted that "idiosyncratic changes" imply a once-in-a-generation shift and an opportunity for investors and companies.A slew of factors such as corporate tax cuts, investment incentives, and infrastructure spending are helping drive capital investments in manufacturing, Morgan Stanley said, adding that India is also poised to become the factory of the world. It further emphasised that India's share of manufacturing is expected to increase to 21 per cent of GDP by 2031. It stood at 15.6 percent as of financial year 2022.The report also highlighted the role of public digital infrastructure in India in driving the growth.