India transformed in last 10 years; different from 2013: Here's 10 big changes as per Morgan Stanley report

A report by Morgan Stanley Research has revealed how India has transformed in less than a decade and is very different from 2013, mostly because of its policy choices and implications for its economy and market.

The report – India Equity Strategy and Economics: How India Has Transformed in Less than a Decade – shows how India has gained positions in the world with significant positive consequences for the macro and market outlook, ANI reported.

The report is based on 10 big changes namely, supply-side policy reforms, formalisation of the economy, Real Estate (Regulation and Development) Act, digitalizing social transfers, Insolvency and Bankruptcy Code, flexible inflation targeting, focus on FDI, India's 401(k) moment, government support for corporate profits and MNC sentiment at multiyear high.

“We run into significant skepticism about India, particularly with overseas investors, who say that India has not delivered its potential (despite its being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich. However, such a view ignores the significant changes that have taken place in India, especially since 2014,” the report said.

In 10 years, India's base corporate tax rate has stayed below 25 per cent. Moreover, it has helped new companies with operations stay at 15 percent. Furthermore, new national highways, broadband subscriber base, renewable energy and electrified railway route have added to the infrastructure development in the country.

The report further reveals that GST collections were showing upward trends over the years while digital transactions grew 76 per cent of the GDP.

On May 18, Morgan Stanley said India is poised to grow at 6.2 per cent in the current financial year 2023-24 with improving macro stability indicating that the monetary policy will not have to turn restrictive.

“We see healthy balance sheets sustaining the robust trends in domestic demand. Improving macro stability means the monetary policy will not have to turn restrictive, allowing the economic expansion to continue,” the report added.