India is on track to surpass Japan and Germany to become the third-largest economy in the world by 2027 and to have the third-largest stock market by 2030, with key investments in technology and energy, says Ridham Desai, Morgan Stanley’s Chief Equity Strategist for India.
In a world that is currently starved of growth, the opportunity set in India must be on global investors’ radar,” says Chetan Ahya, Morgan Stanley’s Chief Asia Economist. “India will be one of only three economies in the world that can generate more than $400 billion annual economic output growth from 2023 onward, and this will rise to more than $500 billion after 2028.”
India is likewise well-positioned to become the global factory, as corporate tax cuts, investment incentives, and infrastructure spending encourage capital investments in manufacturing.
“Multinationals are now buoyant about the prospects of investing in India, and the government is helping their cause by investing in infrastructure as well as supplying land for building factories,” says Upasana Chachra, Chief India Economist.
India began laying the foundation for a more digital economy more than a decade ago with the launch of a national identification program called Aadhaar. The system creates biometric IDs to establish proof of residence and has been instrumental in digitizing financial transactions, among other benefits.