India's economy could expand by an average of 6.5 per cent a year over the next decade, with industry and exports set to drive much of that growth, according to a report by US investment bank Morgan Stanley.

Exports below potential

India accounts for just 1.8 per cent of global exports despite its large share of the world’s GDP and working-age population. The report said a comprehensive package of reforms, combined with faster infrastructure rollout, could help the country capture a larger share of trade. It also noted that each job created in manufacturing exports has the potential to generate two more in sectors such as transport and logistics.

Employment challenge ahead

At least 84 million people are expected to enter the labour force in the next decade, even if participation rates

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