Indian economy more robust than emerging market peers: Morgan Stanley's Jonathan Garner

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India's financials are positioned positively compared to other Asian emerging markets such as Korea and Taiwan, Jonathan Garner, Chief Asia and Emerging Market equity strategist at Morgan Stanley, said in an interview with CNBC-TV18.

''India is one of the most expensive markets and has enjoyed earnings growth in FY22, however, economies like Korea and Taiwan suffered blows due to semiconductor shortages,'' Garner told CNCB-TV18.

Also Read: Morgan Stanley predicts $6.5-trillion boom in India’s stock market by 2030

According to Garner, the Indian economy is better placed among emerging markets and the market outlook is positive for 2023 on lower inflation and lesser rate hikes.

In a new Morgan Stanley Research Bluepaper, analysts working across sectors expect a new era of economic development that could bring about staggering changes in India such as boosting India’s share of global manufacturing, expanding credit availability, creating new businesses, improving quality of life and spurring a boom in consumer spending.

“We believe India is set to surpass Japan and Germany to become the world’s third-largest economy by 2027 and will have the third-largest stock market by the end of this decade,” said Ridham Desai, Morgan Stanley’s Chief Equity Strategist for India.

“Consequently, India is gaining power in the world order, and in our opinion, these idiosyncratic changes imply a once-in-a-generation shift and an opportunity for investors and companies," she said.

The Morgan Stanley data also showed that multinationals’ sentiment on the investment outlook in India is at an all-time high. The share of manufacturing in the GDP in India could increase from 15.6 percent to 21 percent by 2031 and, in the process, double India’s export market share.