An analysis of India within Morgan Stanley’s BRICS group positions the country as the fastest growing economy among member states through 2026, which actually represents a major shift in the current global economic dynamics. Investment banks’ forecasts for India’s economic growth show that BRICS global growth will be led by India’s exceptional performance, with India’s GDP forecast for 2025 showing an expansion of 5.9% and an even stronger 6.4% in 2026.
Along with strong domestic demand and various major policy support initiatives, it catalyzes the outlook for India’s investment, accelerating the country’s economic momentum at the time of writing.
Morgan Stanley highlights India’s economic growth and BRICS leadership
GDP forecasts show strong economic momentum
Morgan Stanley’s forecast for India within BRICS has actually revolutionized how some key market analysts view India’s economic growth. Bank economists have forecast India’s GDP forecast for 2025 at 5.9%, followed by a 6.4% expansion in 2026, with this trajectory currently designed to maintain the country’s position as the fastest growing major economy in the world.
These BRICS global growth forecasts have attracted attention from a large number of key investors groups across multiple key market segments following a solid growth performance of 6.2% in India last year.
“We’re looking forward to seeing you in the process of exploring the world,” said Ridham Desai, India’s chief equity strategist at Morgan Stanley.
“Global uncertainty offers investors the opportunity to buy India’s long-term stories as the country moves through record-breaking growth of 10 years.
The investment environment remains positive
Morgan Stanley’s India valuation highlights the robust Indian investment outlook, with a variety of key structural factors changing across several key economic sectors. India’s economic growth benefits from policy changes that have preceded private sector participation through digital pushes, demographic changes, government infrastructure spending and more important market development.
A new cycle of country’s capital expenditure and an increase in appetite for debt financing has optimized its contribution to BRICS Global Growth, which is currently accelerating in several key business areas.
Desai also stated:
“Similarly, a new cycle of capital expenditure by the private sector, an increased desire for debt financing and robust discretionary expenditure, should bring about mid-term and luxury revenue growth each year over the next five years.”
India’s Leadership within the BRICS Framework
An analysis of India within Morgan Stanley’s BRICS established the country to contribute approximately 13% of the bloc’s total economic output through various major economic initiatives. India’s GDP forecast for 2025 actually exceeds the growth rates of other BRICS countries, and this performance strengthens India’s leadership position in several key strategic areas.
The upcoming BRICS presidency in 2026 further maximized the investment outlook for India, where India’s economic growth momentum will lead the bloc’s agenda through numerous key policy developments. The strong foundations and supportive government policies in India have fixed the trajectory of BRICS global growth, and the government has implemented and optimized these policies in recent years across multiple important economic sectors.
