India’s Remarkable Transformation In A Decade: Morgan Stanley Report Highlights 10 Key Changes

India has gained positions in the world order with significant positive consequences for the macro and market outlook in a span of 10 years, according to a new Morgan Stanley Research Report.

In the report titled, 'India Equity Strategy and Economics: How India Has Transformed in Less than a Decade', authored by Morgan Stanley India's Chief Economist and Managing Director Ridham Desai,10 significant positive transformations India has experienced in recent years are outlined. The report credits India's policy choices for the changes, which have had implications for the economy and market.

According to the report, overseas investors often express doubts on India's potential despite it being the second fastest-growing economy and having one of the top-performing stock markets in the last 25 years. However, the report points out that such skepticism overlooks the significant changes India has undergone, particularly since 2014.

The 10 significant changes that the Morgan Stanley report highlights are -

1. Supply-side Policy Reforms

2. Formalisation of the Economy

3. Real Estate (Regulation and Development) Act

4. Digitalising Social Transfers

5. Insolvency and Bankruptcy Code

6. Flexible Inflation Targeting

7. Focus on FDI

8. India's 401(k) Moment

9. Government Support for Corporate Profits

10. MNC Sentiment at Multiyear High

The US firm praised India's economic initiatives, emphasizing that the base corporate tax rate remains below 25%, with a rate of 15% for new entities starting operations before March 24.

The study noted developments in national highways, broadband, renewable energy, and electrified railway routes.

According to Desai, India has made noteworthy advancements in the last decade with varying reforms, which have contributed to India's improved standing in the international arena.

This comes as the Modi Government completes 9 years of its governance.