India could emerge as Asia’s strongest economy in 2022- 2023 as it is best-positioned to generate robust domestic demand, helped by economic policy reforms, a young workforce and business investments, Morgan Stanley economists said.<\/p>\n
The brokerage expects India’s growth to average 7% for 2022-2023 and contribute 28% and 22% to Asian and global growth, respectively.<\/p>\n
Morgan Stanley’s projection comes as Asia’s third- largest economy grew 9.2% in the fiscal year 2022, a sharp recovery from a 6.6% contraction in the previous year as COVID-19 lockdowns took a severe toll on its economy. The country now expects GDP growth for 2022-2023 at 8%-8.5%<\/p>\n
Lower corporate taxes, the production-linked incentive (PLI) scheme and India as a potential beneficiary of supply chain diversification will catalyse and sustain domestic demand, especially in investment,” the economists said in a note dated Tuesday.<\/p>\n
In 2019, India had cut corporate tax rates to woo manufacturers and revive private investment, and launched the PLI scheme in 2020 to aid domestic manufacturing.<\/p>\n
The brokerage sees risks related to higher energy prices, spurred by the Ukraine war and supply constraints, to remain, but added that they have begun to recede.<\/p>\n
Morgan Stanley’s outlook also comes as developed economies paint a glum picture, with business activity in the United States and eurozone contracting in July, as per their PM data.<\/p>\n
“The economy is set for its best run in over a decade as pent-up demand is being unleashed.” the brokerage said, adding that “healthy” corporate balance sheets and business confidence bodes well for India’s investment outlook.<\/p>\n
While India, like other economies, raised interest rates to battle inflation, Morgan Stanley said the country’s 39.45 trillion rupee ($529.7 billion) budget for the current fiscal year has continued to tilt towards lifting public investment.<\/p>\n
It expects domestic consumption to pick up and services exports to hold up better than goods exports.<\/p>\n
Source: Times of India<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" India could emerge as Asia’s strongest economy in 2022- 2023 as it is best-positioned to generate robust domestic demand, helped by economic policy reforms, a young workforce and business investments, Morgan Stanley economists said. The brokerage expects India’s growth to average 7% for 2022-2023 and contribute 28% and 22% to Asian and global growth, respectively. […]<\/p>\n","protected":false},"author":7,"featured_media":72593,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,20],"tags":[],"class_list":["post-102037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-india"],"yoast_head":"\n