India could be entering a major investment-led growth phase, with about $800 billion in additional capital spending expected over the next five years. The push is being driven by geopolitical tensions in the Middle East, which are reshaping global supply chains and accelerating domestic capacity building across key sectors, according to a macro outlook note.In a report titled Opportunities and Risks amid Conflict, Morgan Stanley India Economics & Strategy said: “The Middle East conflict is likely to see a renewed surge in investment activity in different sectors – defence, data centres, energy diversification and efforts to secure supply chains.”
Despite global volatility, India’s medium-term growth outlook remains steady, with real GDP expected to hold in the 6.5–7% range.
