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By
Fibre2Fashion
Published
Feb 24, 2017
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Indian economy to touch $5 tr by FY2025: Morgan Stanley

By
Fibre2Fashion
Published
Feb 24, 2017

Driven by supportive demographics and government's policies, the Indian economy could touch $5 trillion by financial year 2025, according to a recent report. Currently, the country has a $2.2 trillion economy, making it the seventh largest in the world and a per capita income of $1,700 that's less than a number of emerging markets across the world.



Factors like demographics, government actions and globalisation will lead to productive growth in the medium term, says the Morgan Stanley report. It adds that the per capita income in India will rise 125 per cent to $3,650 by fiscal 2024-25.

The millennial population of India is 400 million, making it the largest in the world. Its collective spending power amounts to $180 billion, and smartphone adoption along with the widespread mobile broadband infrastructure will make it a disruptive force, notes the report.

The population factor of the country will play a key role in shaping the growth trajectory and the development of product markets that will depend on the evolving preferences of the people. The report adds that along with demographics, the ability and skills of the working age population to compete in the global environment will also be an important factor.

Sufficient employment opportunities will need to be created to harness the skilled population and the report says that this could be a challenge for India.

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