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Ongoing GDP growth looks like 2003-07 one

Capex cycle has more room to run; Current cycle driven by investment outperforming consumption, public capex leading initially, but pvt capex rapidly catching up: Morgan Stanley

image for illustrative purpose

Ongoing GDP growth looks like 2003-07 one
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18 March 2024 6:30 AM IST

Investment-To-GDP Ratio Expansion

  • Urban consumer leading consumption
  • It’s followed by catch-up in rural demand
  • Market share in global exports rising
  • Macro stability risks kept in check

New Delhi: India’s current world-beating economic growth rate on the back of an investment boom resembles that of 2003-07 when growth averaged more than eight per cent, according to economists at Morgan Stanley. In a report ‘The Viewpoint: India - Why this feels like 2003-07’, Morgan Stanley said after a decade of investment to GDP steadily declining, capex has emerged as a key growth driver in India.

“We think the capex cycle has more room to run, therefore the current expansion closely resembles that of 2003-07,” it said.

Economic Growth Investment Boom Morgan Stanley Capex GDP 
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