Morgan Stanley Predicts Stability for India’s Economy, Projects Strong Performance in 2025

GG News Bureau
New Delhi, 7th Dec. India’s economy is expected to remain stable, driven by robust domestic investment, according to American brokerage firm Morgan Stanley. The firm forecasts that India could be one of the best-performing emerging markets in 2025. If the current market trend continues, the Sensex could reach 105,000, reflecting a 28.5% increase from its current level.

The brokerage firm states that the Sensex could achieve this level if crude oil prices stay below $70 per barrel, which would reduce inflation and prompt the Reserve Bank of India (RBI) to cut interest rates more than expected.

Morgan Stanley also suggests that in the base case scenario for the next year, the Sensex could touch 93,000, representing a 13.8% increase. This projection assumes that the reduction in the fiscal deficit will contribute to economic stability, an increase in private investment, and a growing gap between real growth and real rates.

However, if the market experiences a downturn (bear case), the Sensex could fall 14.3% to around 70,000, should crude oil prices rise to $110 per barrel and the U.S. economy enter a recession.

Mark Mobius Expects 20% Return in 18 Months

Mark Mobius, Chairman of Mobius Emerging Opportunities Fund, remains optimistic about India’s growth, expecting a 20% return from the Indian market over the next 12 to 18 months. He believes India will outperform China in the coming years.

India Leads in Green Investments, Surpasses China

In renewable energy, India has surpassed China in green investments, completing deals worth approximately ₹20,000 crore in the third quarter. This figure is four times greater than China’s and only second to the United States.