New Delhi, April 30 -- The US-Iran war in the Middle East could act as a catalyst for India's next investment upcycle, with policymakers expected to respond through stronger capital expenditure and strategic diversification across key sectors, according to a report by Morgan Stanley.

The global brokerage said India's policy focus is unlikely to be on eliminating external dependencies overnight, but the emphasis will be on reducing concentration risks, strengthening domestic buffers, and improving resilience to repeated global shocks.

Energy remains at the core of India's policy response. The report highlighted a multi-layered approach that balances energy security with sustainability goals. Key measures include expanding the Strategic P...