India may add 16% to global GDP this fiscal

Sustainable Growth

- India expected to grow above 6%

- Purchasing Managers’ Index (PMI) is at a 13-year high

- Manufacturing PMI is near 11-year high

- PV sales are at 131% of pre-Covid levels

- GST collections are 35% higher than pre-Covid levels

Chennai: With the Indian economy being a key contributor for Asian economic growth outperformance, the broad-based recovery in demand runs counter to the weakness seen outside Asia, said Morgan Stanley in a report.

According to Morgan Stanley, India is benefitting from a combination of cyclical and structural tailwinds and is expected to contribute 16 per cent of the global gross domestic product (GDP) over 2023-24.

“In recent months, a wide variety of indicators suggests that India’s recovery is strong and broad-based, and is well-placed to sustain growth rates of above six per cent,” the report said.

The Purchasing Managers’ 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.­