GDP: India is providing good opportunities to investors in Asian countries, Morgan Stanley said this on the economy

India will continue to have the best domestic demand among Asian countries as investors remain interested in it. Morgan Stanley said in a report that investors are particularly focused on the sustainability of growth as higher compound annual growth will be required to justify valuations and new investments.

Morgan Stanley has also given reasons for domestic demand in India.

Global investor bank Morgan Stanley said India's nominal GDP growth will reach 11.6 per cent by 2023 compared to 9.2 per cent. This will be the third consecutive year that nominal GDP growth will be the strongest in Asia. According to Morgan Stanley, India's contribution to Asian and global growth will be 30 percent and 17 percent respectively, up from 28 percent and 16 percent by 2023.

In the medium term, Upasana Chhachar, chief India economist at the global investment bank, has estimated that real GDP growth will average 6.3 per cent even through fiscal year 2031-32. Morgan Stanley said consumption in India is showing signs of recovery and is spreading relatively among the lower and middle-income groups.

These things have been said in the report titled 'The Viewpoint: India - Addressing the Debate with Investors' written by Chetan Ahya, Derrick Y Kam, Kiusha Peng, and Jonathan Cheung. According to the report, there has been development in the consumer sector as well. There has been an increase in new products and innovations from small companies. The products of small companies are succeeding in replacing the products of big companies.

There may be a sustained increase in the investment-to-GDP ratio of capital expenditure in India. This will increase from 31.2 per cent in the financial year 2022-23 to 33.5 per cent in 2024-25 and 36 per cent by 2026-27.

India's share in global FDI inflows has increased since 2017 and based on announcements coming from the corporate sector, benefits from supply chain diversification efforts are in the pipeline and will materialize in the coming 2-3 years.