Morgan Stanley, in its latest report, has said that in a short span of 10 years, India has gained positions in the world order with significant positive consequences for the macro and market outlook.
The report, India Equity Strategy and Economics: How India Has Transformed in Less than a Decade has predicted that India will emerge as a key driver for Asia and drive a fifth of global growth in the coming ten years.
Morgan Stanley has based its report on 10 big changes, mainly due to India’s policy choices, and their implications for its economy and market. These are Supply-side Policy Reforms, Formalisation of the Economy, Real Estate (Regulation and Development) Act, Digitalising Social Transfers, Insolvency and Bankruptcy Code, Flexible Inflation Targeting, Focus on FDI, India’s 401(k) Moment, Government Support for Corporate Profits, and MNC Sentiment at Multi Year High, the report added.
Noting its achievements over the years, the report said in 10 years, India’s base corporate tax rate has stayed below 25 per cent, while for new companies with operations commencing before March 24, it has stayed at 15 per cent. In terms of infrastructure development, there has been significant development in national highways, broadband subscriber base, renewable energy and railway route electrification.
