- Thursday, March 06, 2025
By: Shubham Ghosh
India is all set to surpass Japan and Germany to become the world’s third-largest economy in another five years, a report by Morgan Stanley has said.
The South Asian economy is also on track to have the largest stock market by 2030 following key investments in fields such as technology and energy.
The report said that India is the fastest-growing economy in the world and its gross domestic product (GDP) could double from the current $3.5 trillion (£3 trillion) to more than $7.5 trillion (£6.5 trillion) by 2031.
It was also predicted that India’s share of global experts could also double in the same period, while the Bombay Stock Exchange could see an annual growth of 11 per cent, reaching a market capitalisation of $10 trillion (£8.7 trillion) in the next decade.
Morgan Stanley’s chief Asia economist Chetan Ahya said India will among three economies that can generate over $400 billion (£351 billion) in annual economic output growth from 2023 onwards.
He said the numbers will rise to more than $500 billion (£439.2 billion) after 2028.
In the recent India Today Conclave in Mumbai, Ridham Desai, managing director of Morgan Stanley India, said India is set to become the world’s factory and office.
He said four big trends in the world at the moment have led to the optimism that India’s GDP could double in the next 10 years.
These trends, according to him, 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.”
