India's infrastructure gets a shot in the arm with PM Gati Shakti, says Morgan Stanley

In a recent report, American multinational investment bank and financial company Morgan Stanley commended India's PM Gati Shakti scheme, highlighting its significant impact on the country's infrastructure development.

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According to the report, India has made substantial advancements in infrastructure over the last decade, with investments not only increasing but also being better targeted and potentially more productive. The report emphasizes that India's focus on infrastructure spending is expected to persist.

Morgan Stanley projects that India's infrastructure investment will rise steadily from 5.3 percent of GDP in fiscal year 2024 (FY24) to 6.5 percent of GDP by fiscal year 2029 (FY29). This growth is anticipated to reflect a strong compound annual growth rate (CAGR) of 15.3 percent, resulting in cumulative spending of USD 1.45 trillion over the next five years. The report suggests that this investment surge will enhance the overall investment rate, leading to a prolonged period of high productive growth.