Morgan Stanley sees India's capex at $2.2T by FY2030
Big news for India's economy: Morgan Stanley predicts that capital investments will jump to $2.2 trillion by FY2030, 1.8 times what they are now.
This boost is mostly thanks to private companies stepping up, strong local demand, supportive government policies, and a comeback in exports.
The investment rate is expected to climb from 34.6% of GDP to about 37.5% by FY2030 (about the next four years from July 2026).
Central government capex ₹2.5T in FY27
Key sectors like energy transition, defense, manufacturing supply chains, and infrastructure are leading the charge.
In FY27 (April and May), central government spent ₹2.5 trillion on capex (with over half going into roads and railways) while state spending stayed pretty low.
PLI drew ₹2.4T net FDI $11.9B
The Production Linked Incentive (PLI) scheme has already drawn in ₹2.4 trillion by FY26 and sparked an extra ₹22.7 trillion in production.
Plus, foreign direct investment (FDI) is looking strong: gross FDI hit $100.9 billion and net FDI reached a 25-month high at $11.9 billion, even with global uncertainties hanging around.