Morgan Stanley, an US based multinational investment bank and financial services company, has released an upbeat report on India titled ‘India Equity Strategy and Economics: How India has Transformed in less than a Decade’. According to ANI News the report highlighted 10 big changes mostly because of India’s policy choices and their implications for its economy and market.
Morgan Stanley’s report says, “This India is different from what it was in 2013. 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 also questions the skepticism about India by overseas investors and others. The paper says, “We run into significant skepticism about India, particularly with overseas investors, who say that India has not delivered its potential (despite it being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich.”
Morgan Stanley’s report says that such a view ignored the significant changes that took place in India, especially since 2014.
ANI News reports that Morgan Stanley research paper took 10 big changes while filing the report. The changes are supply-side policy reforms, formalization of the economy, Real Estate (Regulation and Development) Act, digitalization of 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 multilayer high.
ANI News said that on May 18 Morgan Stanley said that India will grow at 6.2% in the current financial year 2023-24 with improving micro stability indicating that the monetary policy will not have to turn restrictive.
Morgan Stanley’s report comes as a validation of the economic policies undertaken by the Narendra Modi government since 2014.