Global investment bank Morgan Stanley has upgraded India to “standout overweight” in its emerging markets (EM) portfolio, citing the country’s strong economic and earnings growth prospects.
In a note to clients, Morgan Stanley said that India is “the most attractive EM” market, given its “superior” growth outlook, improving macro-stability, and strong domestic flows.
The bank expects India’s economy to grow at 7.2% in the current fiscal year (FY24), and at 6.5% in FY25. This is higher than the consensus estimates of 6.8% and 6.3%, respectively.
Morgan Stanley also expects India’s corporate earnings to grow at 15% in FY24 and 12% in FY25. This is higher than the consensus estimates of 13% and 11%, respectively.
The bank said that India’s macro-stability has improved significantly in recent years, with the government taking steps to reduce the fiscal deficit and inflation.
Morgan Stanley also noted that India’s domestic flows are strong, with retail investors continuing to invest in equities and mutual funds.
The bank said that it is overweight on Indian banks, consumer staples, and information technology (IT) sectors.
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Last reviewed by Abhishek Sharma on February 7, 2026
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