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According to Morgan Stanley report, India is set to become the third-largest country in terms of market capitalization which is likely to grow by over 11 per cent annually to $10 trillion.
“Offshoring, investment in manufacturing and energy transition will lead to an economic boom in India, and these drivers will make it the world’s third-largest economy and stock market before the end of the decade,” the report stated.
“India’s GDP is likely to surpass $7.5 trillion by 2031, more than double the current levels, making it the third-largest economy, adding about $500 billion per annum on an incremental basis over the decade,” said Morgan Stanley.
The report also added that, “We expect India’s global market share to more than double to 4.5 per cent by 2031, providing an incremental $1.2 trillion export opportunity.”
As the e-commerce gained a prominent traction during the pandemic as lockdown restrictions curbed the physical shopping, Morgan Stanley expects the e-commerce penetration to nearly double to 12.3 per cent by 2031.
India has reportedly shown a massive growth is in property development. As per the report, “India should hit a major inflection point for the next residential property boom in 2030.”
Pointing out the factors that may backfires the speedy growth of economy, the report stated that, “A prolonged global recession or sluggish growth, adverse geopolitical developments, domestic politics and steep rise in energy and commodity prices could pose risks to these projections.”
According to earlier reports, Union minister for petroleum and natural gas Hardeep Singh Puri, on September, had also said that India is on the path to become a $10 trillion economy by 2030 and the third largest economy by 2047.