India May Become The Third Largest Economy By 2030: Morgan Stanley

India may become the third largest economy by 2030: Morgan Stanley.

Global investment bank Morgan Stanley has said in a report that by 2030, India can become the third-largest economy in the world.

Manufacturing, energy transition, and investments in digital infrastructure are driving many economic changes in India that will propel the economy.

This can make India the third-largest economy in the world.

The report, titled ‘Why this is India’s Decade’, takes a detailed look at the trends and policies shaping the future of India’s economy.

Morgan Stanley has said that India is steadily getting stronger in the world economy. This is a change that happens once in a generation. This is a golden opportunity for investors and companies.

Four Global Trends of New India.

Demography, digitalization, decarbonization, and deglobalization are the parameters of New India. India will account for a fifth of global growth by the end of this decade.

Growing Per Capita Income.

The number of households in India earning more than USD 35,000 per year is expected to increase five-fold to over 2.5 million in the coming decade.

The GDP is expected to more than double to reach USD 7.5 trillion by 2031. India’s per capita income will increase from US$ 2,278 to US$ 5,242 in 2031.

Growing participation in global services.

The country’s share in the global services trade has increased by 60 basis points to 4.3 percent.

In the future, the number of people employed in jobs outside the country is expected to double to over 11 million.

The report estimates that global spending on outsourcing could increase from 180 to about $500 billion per year by 2030.

Many changes from the base system.

Regarding the success of India’s Aadhaar system, the report said that it is the basic ID for all Indians.

Now transactions are also being done through it. With 1.3 billion people having digital IDs, financial transactions have become easier and cheaper.

Aadhaar has facilitated the direct payment of social benefits.

Here are the other parameters.

The report estimates that the share of the manufacturing sector in India’s GDP will increase to 21 percent by 2031.

India’s share in the global export market is expected to exceed 4.5 percent by 2031. This will create export opportunities equivalent to 1.2 trillion dollars.

India’s services exports will almost triple to US$ 527 billion (US$ 178 billion in 2021) in the next decade.
The penetration of e-commerce will almost double from 6.5 percent to 12.3 percent by 2031.

The number of Internet users in India will increase from 650 million to 960 million while online shoppers will increase from 250 million to 700 million in the next 10 years.

India will account for about 25 percent of global car sales during 2021-2030.

Electric vehicles will account for 30 percent of passenger vehicle sales by 2030.

Access to health services in India may increase from 30-40 percent of the population to 60-70 percent.