In their latest report, The New India- Infrastructure, Morgan Stanley, a renowned investment bank, anticipated that infrastructure investments in India would grow by a CAGR of 15.3%. This credible projection suggests an anticipated expenditure of $1.45 trillion ( ₹121.16 lakh crore) in India in the coming five years. They further mentioned that this would boost the investment rate in India and foster a period of strong growth.
Morgan Stanley mentioned, “Infrastructure investment is the backbone of any economy – and India has not only increased its investments on infrastructure in the last decade but also has worked on improving their productivity. Nonetheless, there is still much headroom for increasing both size and productivity – and recent government policies have been a step in the right direction. From the investment perspective, we expect a 15.3 per cent CAGR in infrastructure investments.”
Morgan Stanley’s report underscores the pivotal role of PM Gati Shakti in driving infrastructural growth in India. The report highlights that the implementation of PM Gati Shakti’s multi-modal connectivity approach is expected to significantly reduce project costs and ensure efficient execution. The report further states, ‘Regarding productivity improvement, we see the well-orchestrated and centralised approach under PM Gati Shakti driving faster execution of infrastructure projects while reducing cost overruns. It should also unleash productivity gains, leading to higher efficiency.‘
Also, read about Morgan Stanley increases India’s rating, China faces downgrade
Implications Of The Infrastructure In India
The new India- Infrastructure report also stated that there are 4 key macroeconomic implications of the increased infrastructure spending in India. These are:
- Increased Capex will Drive More Profits
- Improved Macro Economic Stability
- More efficiency and productivity
- Sustained Growth
