India’s Current Growth Pace Is Like 2003-07, Know Why Morgan Stanley Said This? – News

global financial services Company Morgan Stanley has said a big thing about the fast pace of the Indian economy. Let us tell you that America’s famous financial services company Morgan Stanley has said that India’s current economic growth, which is moving forward on the basis of investment, looks like 2003-07. At that time the economic growth rate was more than eight percent on average. Economists of Morgan Stanley have said this. Morgan Stanley in a report ‘The Viewpoint: India – Why This Feels Like 2003-07’ said that after a decade of continuous decline in investment relative to GDP, capital expenditure has now emerged as the key driver of growth in India.

The pace of growth accelerated due to increased investment

According to the report, we think there is enough scope for a capital expenditure cycle and hence the current uptrend is similar to 2003-07. Economists at Morgan Stanley said the current boom is due to investment increasing more than consumption. This was initially supported by public capital expenditure, but private capital expenditure is also increasing. Similarly, consumption was first supported by urban consumers and later rural demand also increased. The economy has also been supported by increasing market share in global exports and macroeconomic stability.

Investment reached 34% compared to GDP

The report said that we believe that the current boom is due to increase in investment compared to GDP. In a similar growth cycle during 2003-07, investment as a share of GDP increased from 27 percent to 39 percent.” Investment as a share of GDP was at its highest till 2011, after which it declined. This decline was seen from 2011 to 2021, however after that the situation started changing and now investment as compared to GDP has reached 34 percent. The report said that it is estimated to be 36 percent by the financial year 2026-27.

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