Overview
- Morgan Stanley, in a report Sunday, raised its investment-to-GDP forecast for India to 37.5% by FY2030, pointing to $800 billion in extra capital spending over five years.
- Roughly 60% of the projected outlay is expected to target energy, data centers, and defence as policy steers more production and procurement at home.
- The report projects data center capacity jumping from about 1.8 GW today to 10.5 GW by FY2031, helped by AI demand, cloud growth, and stricter data rules.
- Defence spending is seen rising toward 2.5% of GDP by FY2031, with more orders placed domestically after an 18% capital hike in the FY2027 budget.
- Energy remains the key exposure since India imports about 85% of its crude oil and half its natural gas, even as coal output tops 1 billion tonnes and stockpiles near 210 million tonnes.