India's size and scale are one of its key assets which will enable it to be the world's third largest economy by 2027, according to a forecast by Morgan Stanley.
In its report, Morgan Stanley states that they country's GDP will double from its current $3.4 trillion to $8.5 trillion over the next ten years.
" India will add more than $ 400 bn to its GDP every year, a scale that is only surpassed by the US and China," according the report. It also projects that India’s market capitalisation will rise from $3.4 trillion to $11 trillion by 2032, the third largest globally.
However, these projections are underpinned with favourable domestic and global forces. Domestically, it is important to have the shift in policy approach away from redistribution and towards boosting investment and job creation.
"This was evident in the introduction of the goods and services tax which creates a unified domestic market; corporate tax cuts; and production-linked schemes to incentivise investment from both within and outside India’s borders," Morgan Stanley states.
"These forces will integrate India’s fast-growing workforce into the global economy. As it is, India already has a high global market share in services exports, and its lead has only increased since the onset of the pandemic as corporates became more accustomed to remote work," further added.
According to projections by Morgan Stanley, it will take just another seven years for GDP to grow by an additional $3 trillion.
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