India has the conditions in place for an economic boom fuelled by investments in manufacturing, the energy transition, and the country’s advanced digital infrastructure and these drivers will make it the world’s third-largest economy and stock market before the end of this decade ending 2030, said global investment bank Morgan Stanley in a report.
The report titled ‘Why This Is India’s Decade’ looked at the trends and policies shaping the future of India’s economy.
“As a consequence, India is gaining power in the world economy, and in our opinion, these idiosyncratic changes imply a once-in-a-generation shift and an opportunity for investors and companies,” it said.
The four global trends — demographics, digitalization, decarbonization and deglobalization are favouring what it termed as New India. It said India would drive a fifth of global growth through the end of this decade.
How will growth affect consumption:
The number of households earning in excess of USD 35,000/year is likely to rise fivefold in the coming decade, to over 25 million.
The implications of the rising household earnings are GDP likely to more than double to USD 7.5 trillion by 2031, a discretionary consumption boom, and an 11 per cent annual compounding of market capitalization to USD 10 trillion in the coming decade.
India’s per-capita income, it said, would rise from USD 2,278 now to USD 5,242 in 2031, setting the stage for a discretionary spending boom.
Leave a comment
Your email address will not be published. Required fields are marked *