Morgan Stanley predicts that the PM Gati Shakti initiative will spearhead infrastructure development in India. The brokerage firm suggests that increased investments in infrastructure will bridge existing gaps, supported by the PM Gati Shakti National Master Plan.
India’s historical challenges in manufacturing competitiveness due to inadequate infrastructure have shown significant improvement recently, according to Morgan Stanley. The firm notes that India’s physical infrastructure compares favorably with China when considering GDP differentials. It projects that infrastructure investments will rise steadily from 5.3% of GDP in FY24 to 6.5% by FY29.
Morgan Stanley believes that comprehensive enhancements in infrastructure will bolster macroeconomic stability by attracting foreign direct investments (FDIs) and boosting exports. They highlighted that PM Gati Shakti, with its integration of geospatial technology for real-time project monitoring, could further accelerate these improvements.
Source: NDTV
