450 Million People Will Become Middle Class In 10 Years: Morgan Stanley MD

Indore (Madhya Pradesh): Stating that the time of India has arrived, Morgan Stanley India Pvt Ltd managing director Ridham Desai said that currently, 5 million households are on the top of the income pyramid in India, a figure which will reach 20 million households in the next 10 years.   “More interestingly, a hundred million new households which is 450 million people which exceeds the population of US and the whole of Europe are becoming middle class in the next 10 years.

No other place on the planet has this capacity, not even China. China is actually degrowing; the dragon is in serious crisis. Its population is falling and that is a tumultuous thing for China as it is sitting on a large indebtedness,” he said while delivering an address at the 25th convocation of the Indian Institute of Management Indore. 

The ceremony saw a total of 802 participants from seven flagship programmes receiving their degrees.  These included Post Graduate Programme in Management, Post Graduate Programme in Human Resource Management, Five Year Integrated Programme in Management, Executive Post Graduate Programme in Management, Post Graduate Programme for Working Executives in Mumbai, Doctoral Programme in Management, and Executive Doctoral Programme in Management.

Degrees were also awarded to the students who obtained a BA degree from IPM. The Gold Medalists also received their awards.  In his convocation address, Desai said that he sensed five opportunities which are breaking out in the country viz increase in consumption, growth in industrial economy, energy, enhancement in financial services and increase in jobs. 

Claiming India has a very vibrant stock market, Desai said that people should not wait for another 10 years to invest in stocks. “Conserve your resources, spend less, save and invest. Don’t trade but become an investor,” he concluded.  

Research to be supported, IIM-I chairman 

IIM Indore chairman M M Murugappan said that the b-school is going to roll out new courses, encourage and enhance research, build infrastructure and get further collaboration with industry, society and government. “IIM Indore board has approved a big infrastructure programme and a proposal for advancement to technology to aid better teaching and learning. Executive and interdisciplinary programme, outreach and support to research will be encouraged. This will enhance the quality of education in IIM Indore. Our alumni have been a great support to the institution. We will make every effort to connect with you as you will be our ambassadors when you are out of the institution,” he said.  

New joint courses in the pipeline: Rai 

IIM Indore director Prof Himanshu Rai said that IIM Indore made consistent growth in research publications and the institute continues to have a presence in the top 10 B-schools nationally and internationally. He emphasised the institution's expanding global presence with collaborations in 20 nations and ongoing efforts to further extend its reach.

“We have many new joint programmes under both national and international collaborations in the pipeline, and this reflects the institution's dedication to education and its efforts to spread its international footprint,” said Rai. Furthermore, he mentioned the growing alumni network, surpassing 800 members in the UAE and GCC nations, signifying the institution's global impact and influence. 

Five opportunities Desai says breaking out 

Consumption: We have a crossed magical threshold of $2,500 per capita. When a country crosses that level, then the spending that the country does on basic necessities like food, shelter, clothing tends to max out. So, now spending on other things will grow.  

Industrial Economy: The Indian economy is going to surge in the next 10 to 15 years. The world is looking up to India to be the next manufacturing hub. The world is not relying upon China any more. The supply chain that is built in China is going to get dismantled, not to the whole but to some extent. 

Energy: The average Indian consumes about 800 watts of electricity energy per day whereas the American consumes 9,000 watts. The energy consumption in India is going to go up because we have found new sources of energy. The energy economy in this country is unravelling. 

Financial services: The private debt in India is 60 per cent of the GDP where that number is 220 per cent in China and 200 per cent in US. We managed to democratise credit in India. Credit now will become available to the poorest of the poor because of what we have achieved on India’s tax front. It allows banks to give loans without physical security. 

Surge in jobs: During Covid-19 crisis everything was grim; there was a silver line which emerged and that was “work from home”. MNC CEOs thought when it has to be work from home then it can happen from Mumbai instead of Florida as it is going to be cheaper. So during Covid, a massive number of jobs shifted to India and that trend has now got a pace.     

S.No. Programme Male  Female Total      

1. PGP 351 170 521     

2. PGPHRM 1 38 39     

3. IPM 65 32 97     

4. EPGP 32 7 39     

5. PGPMX 37 10 47     

6. DPM 7 11 18     

7. EDPM 8 1 9     

8. IPM-BA Degree 20 12 32     

Total  802    

Published on: Monday, April 01, 2024, 10:41 AM IST