Mumbai: India is all set to be expected to be a $6 trillion economy — the third biggest in the world — in the next 10 years, majorly helped by digitisation.
If the global brokerage Morgan Stanley are to be believed, India’s digitisation drive would offer a boost of 50-75 basis points to GDP growth in the coming decade.
“We estimate that digitisation will provide a boost of 50-75 basis points to GDP growth and forecast that India will grow to USD 6 trillion economy and achieve upper-middle income status by by 2026-27,” Morgan Stanley head India research and India equity strategist Ridham Desai told reporters here.
“We expect India’s real and nominal GDP growth to compound annually by 7.1 per cent and 11.2 per cent respectively over the coming decade,” he added.
Another significant thing to note is that India’s consumer sectors are also likely to add about $1.5 trillion over the next ten years.
“We project gross FDI inflows amounting to $120 billion by FY’27, almost double the current 12-month trailing run rate of $64 billion,” Desai said.
Desai also said the country is also likely to witness strong domestic participation in equities.
“We project equity saving of USD 420 billion $525 billion over the next ten years, versus the respective $60 billion and $120 billion that households and foreign portfolios invested over the previous ten years,” he said.