3rd -Largest-Economy

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Context

• India will account for a fifth of total global economic growth in the next decade, a forecast by Morgan Stanley
• The expanding size and scale of the country's economy will be the prime drivers of this surge.

The Report and its Projections

• The report titled 'Why This Is India's Decade' underlines the trends and policies driving the future of the country's economy.
• According to the report, India's GDP is set to double from the current $3.4 trillion to $8.5 trillion over the next decade.
• India will add more than $400 bn to its GDP every year, a scale that is only surpassed by the US and China.
• The required conditions are in place to make India the world's the economy as well as the world's third largest stock market by 2027, it said.
• It projected that by 2032, India’s market capitalization will go up from $3.4 trillion to $11 trillion by 2032 — the third biggest and largest.
• Four key factors — demographics, digitalization, decarbonization and deglobalization — are likely to facilitate India's rapid rise.
• According to the report, the number of households making more than $35,000 a year is set to rise fivefold in the coming decade.
• India's per-capita income is set to rise from the current $2,278 to $5,242 in 2031, the report added.

Key Takeaways from the Morgan Stanley report:

• India's global export market share is expected to more than double at 4.5 per cent by 2031, providing an incremental USD 1.2 trillion export opportunity.
• India's services exports will almost treble to USD 527 billion (from USD 178 billion in 2021) over the next decade.
• E-commerce penetration to nearly double from 6.5 per cent to 12.3 per cent by 2031.
• Internet users in India to increase from 650 million to 960 million while online shoppers will grow from 250 million to 700 million over the next 10 years.
• Around 25 per cent of incremental global car sales over 2021-2030 will be from India and expect 30 per cent of 2030 passenger vehicle sales to be electric-run.
• India should hit a "major inflection point" for the next residential property boom in 2030 - a confluence of high per-capita income, a mid-30s median age, and higher urbanization.
• India's workforce in the technology services sector to more than double from 5.1 million in 2021 to 12.2 million in 2031.
• Healthcare penetration in India can rise from 30-40 per cent now to 60-70 per cent; implying 400 million new entrants to the formal healthcare system.
• Over USD 700 billion in energy investments are expected over the next decade as India accelerates its energy transition.

https://economictimes.indiatimes.com/news/economy/indicators/3rd-largest-economy-market-a-5th-of-global-growth-morgan-stanley-forecasts-indias-rise-in-coming-decade/articleshow/95384904.cms