With India set to be one of the world's fastest growing economies, investment bank Morgan Stanley expects India to contribute 16 per cent of the global gross domestic product (GDP) over 2023-24.
According to Morgan Stanley, India is benefitting from a combination of cyclical and structural tailwinds.
"In recent months, a wide variety of indicators suggest that India's recovery is strong and broad-based, and is well-placed to sustain growth rates of above 6 per cent," the report said.
The Purchasing Manager's Index (PMI) is at a 13-year high and manufacturing PMI is near a 11-year high, both well above that of other economies; passenger vehicle sales are at 131 per cent of pre-Covid levels, real goods and services tax collections are 35 per cent higher than pre-Covid and services exports have risen by 84 per cent since Oct-20, Morgan Stanley said.
A strong domestic demand and services export will offset the downside in goods export. Domestic demand is supported by healthy balance sheets.
"India's strong growth outlook stands out as the best among large economies and we forecast it will contribute 16 per cent to global GDP growth over 2023-24."