India Is on Track to Gain Bigger Share in Global Output: Report

The report said this combination of high growth, low volatility, and falling interest rates supports higher price-to-earnings (P/E) ratios in the equity market.

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India is set to play a bigger role in the global economy over the coming decades, noted a recent report by Morgan Stanley. The report says with the expectation of India's credit to GDP rising and manufacturing gaining a bigger share in GDP, the country's role in global economy will significantly go up.

The report said that India is on track to gain more share in global output in the coming years due to a mix of strong foundational factors.

These include robust population growth, a functioning democracy, stable macroeconomic policies, improved infrastructure, a rising entrepreneurial class, and better social outcomes.