Morgan Stanley economists draw parallels between India’s current economic growth and the investment boom observed during 2003-07. With a focus on capital expenditure (capex), the current cycle mirrors the past period, characterized by rising investment-to-GDP ratios. In both eras, capex drove productivity, job creation, and income growth, with notable improvements in savings and GDP expansion. The current trajectory, led by public capex, is poised for further enhancement, potentially spurring private sector investment. Policy reforms and infrastructure spending are deemed crucial for sustaining the growth momentum.
India’s Economic Growth Resembles 2003-07 Investment Boom: Morgan Stanley
![](https://affairsace-media.s3.ap-south-1.amazonaws.com/2024/03/17234821/TNIE_import_2021_12_30_original_economy-ezgif.com-avif-to-jpg-converter-860x661.jpg)