According to Morgan Stanley’s report “The New India: Why this is India’s decade,” India’s economy is set to thrive in the coming years. The report outlines several factors driving this growth, including offshoring, increased manufacturing investments, energy transition, and advanced digital infrastructure. It predicts that these elements will propel India to become the world’s third-largest economy and stock market by 2030.
The global brokerage firm also highlights how geopolitical shifts, such as US-China trade tensions and Russia’s actions in Ukraine, are reshaping the global economy towards a multipolar world. The COVID-19 pandemic has further accelerated trends like “slowbalization” and multipolarity, shifting focus from “just in time” to “just in case” logistics strategies.
In response to these dynamics, the Indian government is implementing strategic policies to enhance domestic industry competitiveness. These include reduced corporate tax rates, Production-Linked Incentive (PLI) schemes to boost local manufacturing, labor reforms, and infrastructure expansion.
Economist Martin Wolf suggests that while India may not achieve high-income status by 2047, it is positioned to emerge as a significant global power by that time. He projects India’s GDP per capita to grow steadily, potentially rivaling the United States’ economy by 2050.
Overall, while the path to high-income status remains uncertain, India’s strategic advantages such as its large population and strategic alliances position it well to assert itself as a global economic force in the coming decades.
