India to become third-largest economy by 2027: Report
A report by Morgan Stanley has forecast that India will surpass Japan and Germany and become the third largest economy by 2027.
India will surpass Japan and Germany to become the third-largest economy by 2027, according to a report by Morgan Stanley. The country is also on track to have the largest stock market by 2030 following its key investments in technology and energy.
According to the report, India is the fastest-growing economy in the world and its gross domestic product (GDP) could double from the current $3.5 trillion to over $7.5 trillion by 2031.
India’s share of global exports could also double over that period, while the Bombay Stock Exchange could deliver 11% annual growth, reaching a market capitalization of $10 trillion in the coming decade.
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Chetan Ahya, Morgan Stanley’s Chief Asia Economist, said India will be one of the only three economies in the world that can generate more than $400 billion in annual economic output growth from 2023 onwards. He added that the numbers will rise to more than $500 billion after 2028.
India's economic growth has been attributed to three megatrends - global offshoring, digitalization and energy transition.
In the recent India Today Conclave that was held in Mumbai, Ridham Desai, managing director of Morgan Stanley India said that the nation is set to become a factory and an office for the world. He said four big trends in the world right now have led to the optimism that India's GDP will likely double in the next 10 years.
These trends, according to Desai, are, "Demographic problem (ageing population), de-globalisation, disruption due to digitalisation and decarbonisation because the world is obsessed with climate change. India is probably the only country in the world benefitting from these four trends."
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