Hindi NewsBusinessIndia Will Become Strong But China Will Not Be As Strong Morgan Stanley’s Chief Economist Said
New Delhi3 minutes ago
copy link
India’s economy will continuously grow at the rate of 6.5% to 7% for the next few years. Apart from this, it will take a long time for India to overtake its main competitor China in the manufacturing sector. Morgan Stanley’s Chief Asia Economist Chetan Ahya said this in an interview with Bloomberg.
Chetan Ahya told that the way China had maintained its economic growth at 8% to 10% in the long term. They do not think that India will be able to maintain this growth rate. According to official data, China’s average annual growth rate for three decades after economic reforms in 1978 was 10%.
Growth affected due to lack of skilled workforce
Ahya said that India’s growth is being affected due to lack of infrastructure and skilled workforce. However, both these constraints give us confidence that India will have strong growth. But, its rate will not be 8% to 10% but 6.5% to 7%.
Morgan Stanley’s Chief Asia Economist Chetan Ahya (file photo)
India’s growth as of 2003-2007
Recently, Morgan Stanley had said in another report that due to the boom in investment, India’s economic growth has become like that of 2003-2007. During this period, India’s average annual growth was more than 8%.
Investment to GDP ratio is gradually decreasing
In ‘The Viewpoint: India – Why This Feels Like 2003-07’, Morgan Stanley had said that the investment to GDP ratio, i.e. investment compared to economic growth, has been gradually declining over the last decade. During this period, growth is visible only due to capital expenditure.
Investment to GDP ratio will be 36% by 2027
Similarly, during 2003-2007, the investment to GDP ratio increased from 27% in 2003 to 39% in 2008. After this, a decline was recorded in 2011-12. At present this ratio is around 34%, which is expected to increase to 36% in the next 3 years i.e. by 2027.
Rating agency Fitch also estimated 7% growth
Earlier recently, global rating agency Fitch has increased India’s economic growth estimate for the financial year 2025 from 6.5% to 7%. Fitch said India’s economic growth will be supported by strong domestic demand and increased investment.
Read this news also…
Fitch raises GDP growth forecast to 7% in FY25: earlier estimate of 6.5%; Retail inflation expected to reach 4% by the end of the year
Global rating agency Fitch has increased India’s economic growth estimate for fiscal year 2025 from 6.5% to 7%. Fitch said India’s economic growth will be supported by strong domestic demand and increased investment. Click here to read the full news…
There is more news…
Source: connexionblog.com
