NEW DELHI: Morgan Stanley, the US-based global investment bank, has come out with a report detailing India's transformation under the Narendra Modi government. In a big endorsement for the Modi government, the Morgan Stanley report highlights how India has undergone significant changes because of the government's policy choices, especially since 2014.
'This India is different from what it was in 2013. In a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook," the report said.
The report, India Equity Strategy and Economics: How India Has Transformed in Less than a Decade, highlights the 10 big changes, mostly because of India's policy choices, and their implications for its economy and market.
Morgan Stanley's Research had taken these 10 big changes: Supply-side policy reforms, formalisation of the economy, Real Estate (Regulation and Development) Act, digitalizing social transfers, Insolvency and Bankruptcy Code, flexible inflation targeting, focus on FDI, India's 401 (k) moment, government support for corporate profits and MNC sentiment at multiyear high, while filing the report.
Listing the 10 big changes that have happened since Prime Minister Narendra Modi took office in 2014, the brokerage said bringing corporate tax at par with peers and infrastructure investment picking pace are one of the biggest supply-side policy reforms.
Also, the rising collection of GST -- the uniform tax that replaced more than a dozen different central and state taxes - and the rising share of digital transactions as a percentage of GDP indicate the formalisation of the economy.
Transfer of subsidies to accounts of beneficiaries, insolvency and bankruptcy code, flexible inflation targeting, focus on FDI, government support for corporate profits, a new law for real estate sector and MNC sentiment at multi-year high were other significant changes, it said.
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