India and Southeast Asia Set to Propel Asia's Next Growth Wave

India, Indonesia, the Philippines, and Malaysia are poised to lead Asia's future growth as China's influence wanes, suggests a Morgan Stanley report. By 2027, these economies will account for 53% of Asia's GDP growth, driven by favorable demographics and policies, against a backdrop of shifting economic dynamics.

In an insightful analysis by Morgan Stanley, it emerges that emerging markets like India are on the brink of propelling Asia's next growth spurt, as China's economic influence gradually diminishes. Notably, India, alongside Southeast Asian economies such as Indonesia, the Philippines, and Malaysia, are forecasted to spearhead this economic surge.

The report anticipates these four economies will collectively contribute to 53% of Asia's nominal GDP growth through 2027, marking a substantial increase from the pre-pandemic era. This evolution in growth drivers is attributed to demographic shifts, policy strategies, and geopolitical influences that are reshaping Asia's economic trajectory.

While Asia's economic expansion has been robust, boasting a rise from USD 2.1 trillion in 1980 to an estimated USD 39 trillion by 2027, Morgan Stanley emphasizes a potential slowdown in growth pace. However, the realignment of economic power within Asia is clear, with younger economies taking center stage, supported by demographic advantages and policy frameworks that welcome both local and foreign investments.

(With inputs from agencies.)