Morgan Stanley sees economy crossing $5 trillion by 2025

Tags: News
With improvement in macroeconomic indicators and steady implementation of policy reforms, the economy is likely to cross the USD 5-trillion mark by 2025, a Morgan Stanley report said.

"In our base case, we expect a steady pace of implementation of policy reforms, which will lay the foundations for the country's real GDP growth to move higher to an average of 6.75 per cent over the next 10 years," the research report said.

"If our projections were to come to fruition, the economy would pass the USD 5 trillion mark, a feat that has been achieved by only the US and China thus far and would make India the fifth largest economy (from 10th currently) in the world," it added.

Saying that the worst is over, the report noted the effects of policy measures over the past 12 months are beginning to show in improving macro stability indicators.

"There is growing evidence that the market believes in a new growth cycle - the most pertinent signal being the widening gap between bond and equity yields," the report said.

It also pointed out that the medium-term growth trend of the domestic economy would be supported by the inter-play of the structurally positive factors of demographics, reforms and globalisation.

It also said in the coming 12 months, growth recovery will remain slow, but will pick up from FY16 onwards.

Emphasising on variables like economic reforms, the report said the improvement in the external environment along with a pickup in the pace of structural reforms would be the key factors for growth revival.

EDITORIAL OF THE DAY

  • PSU banks can take a lesson from their private peers on disclosures

    The country’s top private lenders ICICI Bank and Axis Bank declared their fourth quarter earnings recently and both stepped up their asset quality d

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Tushar Gandhi

An unexplored side of rural enterprise

What is rural enterprise? Ask this qu­estion and 9 out ...

Rajgopal Nidamboor

Timeless idiom of mindful living

Each of us, according to scholar-historian Felipe Fernandez-Armesto, is familiar ...

Dharmendra Khandal

So, how do we define a 'vermin'?

These days there’s an ongoing debate whether to declare various ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture