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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000912057-01-531041.txt : 20010903
<SEC-HEADER>0000912057-01-531041.hdr.sgml : 20010903
ACCESSION NUMBER:		0000912057-01-531041
CONFORMED SUBMISSION TYPE:	N-30D
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20010630
FILED AS OF DATE:		20010831

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MORGAN STANLEY DEAN WITTER INDIA INVESTMENT
		CENTRAL INDEX KEY:			0000916618
		STANDARD INDUSTRIAL CLASSIFICATION:	 []
		IRS NUMBER:				132838811
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-30D
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-08238
		FILM NUMBER:		1729075

	BUSINESS ADDRESS:	
		STREET 1:		1221 AVENUE OF THE AMERICAS
		CITY:			BOSTON
		STATE:			MA
		ZIP:			10020
		BUSINESS PHONE:		6175578742

	MAIL ADDRESS:	
		STREET 1:		1221 AVENUE OF THE AMERICAS
		STREET 2:		8TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10020

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INDIA INVESTMENT FUND INC
		DATE OF NAME CHANGE:	19931228

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MORGAN STANLEY INDIA INVESTMENT FUND INC
		DATE OF NAME CHANGE:	19940127
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>a2054445zn-30d.txt
<DESCRIPTION>N-30D
<TEXT>
<Page>

SEMI-ANNUAL REPORT

[MORGAN STANLEY LOGO]

Morgan Stanley India Investment Fund, Inc.

JUNE 30, 2001

MORGAN STANLEY
INVESTMENT MANAGEMENT INC.
INVESTMENT ADVISER

<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
OVERVIEW

LETTER TO SHAREHOLDERS

For the six months ended June 30, 2001, the Morgan Stanley India Investment
Fund, Inc. (the "Fund") had a total return, based on net asset value per share,
of -16.90% compared to -23.78% for the U.S. dollar adjusted Bombay Stock
Exchange (BSE) National Index (the "Index"). For the period from the Fund's
commencement of operations on February 25, 1994 through June 30, 2001, the
Fund's cumulative total return, based on net asset value per share, was -4.96%
compared to -47.81% for the Index. On June 30, 2001, the closing price of the
Fund's shares on the New York Stock Exchange was $8.35, representing a 20.2%
discount to the Fund's net asset value per share.

MARKET OVERVIEW

After being rocked by a slew of negative earnings reports at the beginning of
the second quarter of 2001, the Indian market managed to recover a major part of
the early losses thereafter. By the end of the quarter, the market was back to
tracking global markets, which in turn rallied sharply from cathartic April
lows. However, with domestic demand continuing to slow and speculative excesses
of the past couple of years still being washed out of the system, the market was
still finding it difficult to make much independent headway and so continued to
rely on global flows.

At a micro-level though we are seeing greater opportunities for stock selection.
Market prices are as much a function of sentiment as fundamentals even as we
like to believe that in the long-term only fundamentals determine prices. The
negative sentiment for equities, largely a result of the severe disenchantment
with TMT (technology, media, telecommunication) stocks, has led to many stocks
outside the TMT universe being pummeled to distress valuations. There are some
companies that currently trade in single-digit price/earnings ratios despite a
continued increase in market share and a strong track record of enhancing
shareholder value, the kind of fundamentals we focus on.

By the end of June, we were seeing some signs that the market was willing to let
fundamental analysis get back on the ascendant and move away from a TMT-centric
bias, which has only led to wild sentiment swings.  While it will be difficult
for investors' love affair with TMT stocks to resume in earnest again, we think
it is possible for other stocks to at least get back to normal valuations.
Unfortunately, history is not very supportive of a significant revival in
interest for TMT stocks. Once stocks that have been part of a bubble collapse it
takes a long time, if at all, for those stocks to shine again. Most bubbles
have their origin in some revolutionary change, be it the railways or the
automobile booms of the previous centuries. But once too much capital is thrown
the boom industry's way, leading to obvious disappointment, capital does not
return to the industry for a long time.

MARKET OUTLOOK

Of course, some strong survivors will emerge. But overall we think this is a
time to focus on other themes where the level of research and analysis remains
poor and sentiment weak even though business fundamentals look solid.

OTHER DEVELOPMENTS

On September 15, 1998, the Fund commenced a share repurchase program for
purposes of enhancing shareholder value and reducing the discount at which the
Fund's shares traded from their net asset value. For the six months ended June
30, 2001, there were no repurchases of Fund shares. From the inception of the
program through June 30, 2001, the Fund has repurchased 7,682,800 of its shares
at an average discount of 31.03% from net asset value per share. The Fund
expects to continue to repurchase its outstanding shares at such time and in
such amounts as it believes will further the accomplishment of the foregoing
objectives, subject to review by the Board of Directors.

On March 29, 2001, the Fund completed a tender offer. The Fund accepted
8,407,288 shares for payment which represented 30% of the Fund's then
outstanding shares. Final payment was made on April 12, 2001 at $11.29 per
share, representing 95% of the NAV per share on March 29, 2001.

As noted in the Fund's first quarter report, the Fund's financial report
presents our new format. If you have any questions or comments on these changes,
please contact us through our website, www.morganstanley.com/im, or call us at
1-800-221-6726. We appreciate your continued support.


Sincerely,

/s/ Ronald E. Robison
- ----------------------
Ronald E. Robison
PRESIDENT AND DIRECTOR

July 2001

                                        2
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
JUNE 30, 2001 (UNAUDITED)

INVESTMENT SUMMARY
HISTORICAL INFORMATION

<Table>
<Caption>
                                                                               TOTAL RETURN (%)
                                                     ----------------------------------------------------------------------------
                                                        MARKET VALUE(1)       NET ASSET VALUE(2)       INDEX(3)
                                                     ----------------------------------------------------------------------------
                                                                    AVERAGE                 AVERAGE                     AVERAGE
                                                      CUMULATIVE    ANNUAL   CUMULATIVE     ANNUAL       CUMULATIVE     ANNUAL
                                                      ----------    -------  ----------     --------     ----------     --------
<S>                                                     <C>          <C>        <C>          <C>         <C>            <C>
Year to Date                                            -16.53%         --      -16.90%         --       -23.78%            --
One Year                                                -12.18      -12.18%     -26.82      -26.82%      -38.19         -38.19%
Five Year                                                -6.33       -1.30       19.36        3.60       -32.78          -7.50
Since Inception*                                        -24.13       -3.69       -4.96       -0.69       -47.81          -8.47
Past performance is not predictive of future performance.
</Table>

[CHART]

RETURNS AND PER SHARE INFORMATION

<Table>
<Caption>
                                                      YEAR ENDED DECEMBER 31,                            SIX MONTHS
                           -----------------------------------------------------------------------------   ENDED
                                                                                                          JUNE 30,
                             1994*       1995        1996      1997      1998       1999       2000         2001
- -------------------------------------------------------------------------------------------------------------------
<S>                         <C>         <C>        <C>        <C>       <C>        <C>        <C>         <C>
Net Asset Value Per Share   $ 13.99     $ 8.91      $ 8.81    $ 8.83    $ 9.19     $ 22.59    $ 13.92     $ 10.46
- -------------------------------------------------------------------------------------------------------------------
Market Value Per Share      $ 11.25     $ 9.13      $ 9.50    $ 8.38    $ 6.75     $ 16.50    $ 11.06     $  8.35
- -------------------------------------------------------------------------------------------------------------------
Premium/(Discount)            -19.6%       2.5%        7.8%     -5.1%    -26.6%      -27.0%     -20.5%      -20.2%
- -------------------------------------------------------------------------------------------------------------------
Capital Gains Distributions $ 0.17          --          --        --        --          --    $  1.60     $  0.87
- -------------------------------------------------------------------------------------------------------------------
Fund Total Return(2)          0.72%     -36.31%      -1.12%     0.23%     4.08%     145.81%    -29.68%     -16.90%
- -------------------------------------------------------------------------------------------------------------------
Index Total Return(3)        -7.88%     -31.53%      -6.49%     6.43%   -20.98%      88.41%    -27.73%     -23.78%
- -------------------------------------------------------------------------------------------------------------------
</Table>

(1) Assumes dividends and distributions, if any, were reinvested.
(2) Total investment return based on net asset value per share reflects the
    effects of changes in net asset value on the performance of the Fund during
    each period, and assumes dividends and distributions, if any, were
    reinvested. These percentages are not an indication of the performance of a
    shareholder's investment in the Fund based on market value due to
    differences between the market price of the stock and the net asset value
    per share of the Fund.
(3) The Bombay Stock Exchange (BSE) National Index is a market capitalization
    weighted index including the equity shares of 100 companies from the
    "Specified" and the "Non-specified" list of the 5 major stock exchanges,
    namely, Bombay, Calcutta, Delhi, Ahmedabad and Madras, expressed in U.S.
    dollar terms.
 *  The Fund commenced operations on February 25, 1994.

   FOREIGN INVESTING INVOLVES CERTAIN RISKS, INCLUDING CURRENCY FLUCTUATIONS AND
   CONTROLS, RESTRICTIONS ON FOREIGN INVESTMENTS, LESS GOVERNMENTAL SUPERVISION
   AND REGULATION, LESS LIQUIDITY AND THE POTENTIAL FOR MARKET VOLATILITY AND
   POLITICAL INSTABILITY.

                                        3
<Page>

PORTFOLIO SUMMARY
ALLOCATION OF TOTAL INVESTMENTS

[CHART]
<Table>
<Caption>
<S>                                     <C>
Equity Securities                       95.1%
Short-Term Investments                   4.9
</Table>

INDUSTRIES

[CHART]
<Table>
<Caption>
<S>                                     <C>
IT Consulting & Services                11.3%
Pharmaceuticals                          9.8
Banks                                    9.0
Automobiles                              8.3
Diversified Financials                   6.3
Food Products                            6.0
Chemicals                                4.8
Oil & Gas                                4.3
Road & Rail                              4.1
Household Products                       3.8
Other                                   32.3
</Table>

TEN LARGEST HOLDINGS(*)
<Table>
<Caption>
                                                     PERCENT OF
                                                     NET ASSETS
- ------------------------------------------------------------------
<S>      <C>                                            <C>
1.       Infosys Technologies Ltd.                       7.3%
2.       Hero Honda Motors Ltd.                          6.5
3.       Housing Development Finance Corp., Ltd.         6.3
4.       State Bank of India Ltd.                        5.5
5.       Container Corp. of India Ltd.                   4.1
6.       Cipla Ltd.                                      3.9%
7.       HDFC Bank Ltd.                                  3.5
8.       Gujarat Ambuja Cements Ltd.                     3.4
9.       Bharat Heavy Electricals Ltd.                   3.3
10.      Wipro Ltd.                                      2.8
                                                     -------------
                                                        46.6%
                                                     =============
</Table>

         (*) Excludes short-term investments.

                                       4
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
FINANCIAL STATEMENTS
JUNE 30, 2001 (UNAUDITED)
- ------------------------------------------
STATEMENT OF NET ASSETS
<Table>
<Caption>
                                                                  VALUE
                                             SHARES               (000)
- ----------------------------------------------------------------------------
COMMON STOCKS(97.4%)
(Unless otherwise noted)
============================================================================
<S>                                       <C>              <C>
AUTO COMPONENTS(2.2%)
  Apollo Tyres Ltd.                           2,075(a)     $          3
  Motor Industries Co., Ltd.                 24,204               1,178
  MRF Ltd.                                  138,230               1,621
  Rane (Madras) Ltd.                         95,700(a)               41
  Sundaram Fasteners Ltd.                   421,280               1,611
- ----------------------------------------------------------------------------
                                                                  4,454
============================================================================
AUTOMOBILES(8.3%)
  Hero Honda Motors Ltd.                  4,364,013(a)           13,410
  Patheja Forgings & Auto Parts Ltd.        450,000(a)               --@
  Tata Engineering & Locomotive Co.,
    Ltd.                                  2,702,440(a)            3,594
- ----------------------------------------------------------------------------
                                                                 17,004
============================================================================
BANKS(9.0%)
  HDFC Bank Ltd.                          1,603,012               7,177
  State Bank of India Ltd.                2,395,553              11,219
- ----------------------------------------------------------------------------
                                                                 18,396
============================================================================
CHEMICALS(4.8%)
  Asian Paints (India) Ltd.                 611,780(a)            3,251
  Aventis Cropscience India Ltd.            529,694               1,296
  ICI (India) Ltd.                           25,000(a)               34
  Indo Gulf Corp., Ltd.                   3,254,545               2,494
  Reliance Industries Ltd.                  340,000               2,671
- ----------------------------------------------------------------------------
                                                                  9,746
============================================================================
COMMERCIAL SERVICES & SUPPLIES(0.4%)
  Modi Xerox Ltd.                           718,225(a)              894
============================================================================
COMMUNICATIONS EQUIPMENT(0.0%)
  MRO-TEK Ltd.                              179,625(a)               81
============================================================================
CONSTRUCTION & ENGINEERING(0.5%)
  Larson & Toubro Ltd.                      235,000               1,079
============================================================================
CONSTRUCTION MATERIALS(3.4%)
  Gujarat Ambuja Cements Ltd.             1,405,854(a)            5,538
  Gujarat Ambuja Cements Ltd. GDR           355,000               1,384
  India Cements Ltd.                        183,438                 123
- ----------------------------------------------------------------------------
                                                                  7,045
============================================================================
DIVERSIFIED FINANCIALS(6.3%)
  Housing Development Finance
    Corp., Ltd.                             883,576              12,951
  UTI Mastergain                              1,600(a)               --@
- ----------------------------------------------------------------------------
                                                                 12,951
============================================================================
DIVERSIFIED TELECOMMUNICATION SERVICES(2.5%)
  Mahanagar Telephone Nigam Ltd.          1,702,000              4,568
  Mahanagar Telephone Nigam
    Ltd., GDR                               105,000(a)             566
- ----------------------------------------------------------------------------
                                                                 5,134
============================================================================
ELECTRIC UTILITIES(3.5%)
  Asea Brown Boveri, Ltd.                   121,710                646
  BSES Ltd.                                 556,203(a)           2,324
  Tata Power Co., Ltd.                    1,516,833(a)           4,194
- ----------------------------------------------------------------------------
                                                                 7,164
============================================================================
ELECTRICAL EQUIPMENT(3.3%)
  Bharat Heavy Electricals Ltd.           1,797,226              6,740
============================================================================
ELECTRONIC EQUIPMENT & INSTRUMENTS(0.3%)
  Siemens India Ltd.                        155,898                673
============================================================================
FOOD PRODUCTS(6.0%)
  Britannia Industries Ltd.                 314,132(a)           4,150
  Nestle India Ltd.                         204,824              2,430
  SmithKline Beecham Consumer
    Healthcare Ltd.                         461,855(a)           3,972
  Syngenta India Pvt Ltd.                    56,233(a)              57
  Tata Tea Ltd.                             424,610(a)           1,667
- ----------------------------------------------------------------------------
                                                                12,276
============================================================================
HEALTH CARE BIOTECHNOLOGY(1.0%)
  Shantha Biotechnics Pvt Ltd.              500,000(a)           2,126
============================================================================
HOTELS RESTAURANTS & LEISURE(1.4%)
  Indian Hotels Co., Ltd.                   666,254(a)           2,817
============================================================================
HOUSEHOLD DURABLES(0.4%)
  Carrier Aircon Ltd.                       286,292(a)             597
  Samtel Colour Ltd.                        559,300(a)             193
- ----------------------------------------------------------------------------
                                                                   790
============================================================================
HOUSEHOLD PRODUCTS(3.8%)
  Colgate-Palmolive (India) Ltd.          1,016,386(a)           3,522
  Hindustan Lever Ltd.                      608,897              2,658
  Reckitt Benckiser (India) Ltd.            478,366              1,632
- ----------------------------------------------------------------------------
                                                                 7,812
============================================================================

INTERNET SOFTWARE & SERVICES(0.1%)
  India-Info.com PCL                        532,875(b)             170
- ---------------------------------------------------------------------------
IT CONSULTING & SERVICES(11.3%)
  HCL Technologies Ltd.                     364,554              2,272
  Infosys Technologies Ltd.                 186,845             14,940
  Subex Systems Ltd.                        297,732(a)             349
  Wipro Ltd.                                 61,061              1,817
  Wipro Ltd., ADR                           137,310              3,842
- ---------------------------------------------------------------------------
                                                                23,220
============================================================================
</Table>

    The accompanying notes are an integral part of the financial statements.

                                        5
<Page>

<Table>
<Caption>
                                                                  VALUE
                                              SHARES              (000)
- ---------------------------------------------------------------------------
<S>                                          <C>              <C>
MACHINERY (3.3%)
  Alfa-Laval (India) Ltd.                    454,515          $   1,420
  Atlas Copco (India) Ltd.                    41,822                 70
  Cummins India Ltd.                       2,986,773(a)           3,229
  Lakshmi Synthetic Machinery
    Manufacturers Ltd.                       137,700(a)              10
  Punjab Tractors Ltd.                       264,862(a)           1,068
  Revathi-CP Equipment Ltd.                  277,850              1,031
- ---------------------------------------------------------------------------
                                                                  6,828
===========================================================================
MEDIA (1.0%)
  Creative Eye Ltd.                        1,090,390(a)             484
  New Delhi Television Ltd.                  333,300(a)             957
  Zee Telefilms Ltd.                         271,919                688
- ---------------------------------------------------------------------------
                                                                  2,129
===========================================================================
METALS & MINING(2.5%)
  Hindalco Industries Ltd.                    97,135(a)           1,723
  National Aluminum Co., Ltd.                460,310(a)             578
  Steel Authority of India Ltd.            3,871,870                444
  Tata Iron & Steel Co., Ltd.                996,000              2,452
- ---------------------------------------------------------------------------
                                                                  5,197
===========================================================================
OIL & GAS(4.3%)
  Bharat Petroleum Corp., Ltd.               707,738(a)           2,827
  Castrol (India) Ltd.                       444,434              2,032
  Hindustan Petroleum Corp., Ltd.          1,159,211              3,896
- ---------------------------------------------------------------------------
                                                                  8,755
===========================================================================
PHARMACEUTICALS(9.8%)
  Cipla Ltd.                                 327,418(a)           7,958
  Dabur India Ltd.                         3,808,567              4,996
  Dr. Reddy's Laboratories                     7,900(a)             270
  Dr. Reddy's Laboratories ADR                57,000(a)           1,057
  E. Merck (India) Ltd.                      182,599              1,343
  Glenmark Pharmaceuticals Ltd.               85,953(a)             199
  Hoechst Marion Roussel Ltd.                150,425              1,260
  Lupin Laboratories Ltd.                    253,495(a)             408
  Novartis India Ltd.                        243,065(a)           1,192
  Parke Davis (India) Ltd.                    92,100(a)             312
  Pfizer Ltd.                                 48,247                469
  Strides Arcolab Ltd.                       585,000                734
- ---------------------------------------------------------------------------
                                                                 20,198
===========================================================================
ROAD & RAIL(4.1%)
  Container Corp. of India Ltd.            3,092,722(a)           8,350
===========================================================================
SOFTWARE(0.2%)
  Aztec Software and
    Technology Services Ltd.                 130,995(a)             232
  Polaris Software Lab Ltd.                   24,616                164
  VisualSoft Technologies Ltd.                12,335                 24
- ---------------------------------------------------------------------------
                                                                    420
===========================================================================
SPECIALTY RETAIL(0.8%)
  Titan Industries Ltd.                    1,737,262(a)           1,570
============================================================================
TEXTILES & APPAREL(0.2%)
  Colour-Chem Ltd.                           463,100                442
  Delta International Ltd.                   570,000                 --@
  Mahavir Spinning Mills Ltd.                  5,000(a)              --@
- ---------------------------------------------------------------------------
                                                                    447
===========================================================================
TOBACCO(2.7%)
  ITC Ltd.                                   308,241              4,947
  ITC Ltd. GDR                                27,500                509
- ---------------------------------------------------------------------------
                                                                  5,456
============================================================================
TOTAL COMMON STOCKS
  (Cost $261,253)                                               199,922
============================================================================

<Caption>

                                                FACE
                                              AMOUNT
                                               (000)
- ---------------------------------------------------------------------------
SHORT-TERM INVESTMENTS(4.8%)
===========================================================================
REPURCHASE AGREEMENT(4.8%)
  J.P. Morgan Securities Inc.,
    3.70%, dated 06/29/01, due
    07/02/01
      (Cost $9,869)                        $     9,869(c)           9,869
===========================================================================
FOREIGN CURRENCY ON DEPOSIT WITH CUSTODIAN(0.2%)
  Indian Rupee
  (Cost $453)                   INR           16,161                343
===========================================================================
</Table>

    The accompanying notes are an integral part of the financial statements.

                                        6
<Page>

<Table>
<Caption>
                                              AMOUNT            VALUE
                                               (000)            (000)
- ----------------------------------------------------------------------
 <S>                                        <C>               <C>
TOTAL INVESTMENTS(102.4%)
  (Cost $271,575)                                            $210,134
======================================================================
OTHER ASSETS (7.0%)
======================================================================
  Cash                                     $   1,351
  Receivable for Investments Sold             11,875
  Dividends Receivable                           848
  Interest Receivable                            351
  Other                                           28           14,453
======================================================================
LIABILITIES (-9.4%)
======================================================================
  Payable For:
    Distribution Declared                    (17,077)
    Investments Purchased                     (1,271)
    Custodian Fees                              (432)
    Investment Advisory Fees                    (197)
    Directors' Fees and Expenses                 (69)
    Professional Fees                            (67)
    Shareholder Reporting Expenses               (50)
    Administrative Fees                          (46)
  Other Liabilities                             (152)         (19,361)
======================================================================
NET ASSETS (100%)
  Applicable to 19,617,004, issued and
    outstanding $0.01 par value shares
    (100,000,000 shares authorized)                          $205,226
======================================================================
NET ASSET VALUE PER SHARE                                    $  10.46
======================================================================
AT JUNE 30, 2001, NET ASSETS CONSISTED OF:
  Common Stock                                               $    196
  Paid-in Capital                                             314,461
  Accumulated Net Investment Loss                             (1,591)
  Accumulated Net Realized Loss                              (45,971)
  Unrealized Depreciation on Investments and
    Foreign Currency Translations                            (61,869)
======================================================================
TOTAL NET ASSETS                                             $205,226
======================================================================
</Table>

(a)-- Non-income producing.
(b)-- 144A Security - Certain conditions for public sale may exist.
(c)-- The repurchase agreement is fully collateralized by U.S.
      government and/or agency obligations based on market prices at the date
      of this schedule of investments. The investment in the repurchase
      agreement is through participation in a joint account with affiliated
      funds.
@ --  Value is less than $500.
ADR-- American Depositary Receipt.
GDR-- Global Depositary Receipt.
INR-- Indian Rupee
======================================================================

<Table>
<Caption>
JUNE 30, 2001 EXCHANGE RATE:
- ----------------------------------------------------------------------
<S>      <C>                                        <C>
INR      Indian Rupee                               47.040= U.S.$1.00
======================================================================
</Table>

    The accompanying notes are an integral part of the financial statements.

                                        7
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
FINANCIAL STATEMENTS

<Table>
<Caption>
                                                                                                        SIX MONTHS ENDED
                                                                                                          JUNE 30, 2001
                                                                                                           (UNAUDITED)
STATEMENT OF OPERATIONS                                                                                       (000)
- ------------------------------------------------------------------------------------------------------------------------
<S>                                                                                                       <C>
INVESTMENT INCOME
  Dividends                                                                                               $       1,282
  Interest                                                                                                          609
- ------------------------------------------------------------------------------------------------------------------------
    Total Income                                                                                                  1,891
- ------------------------------------------------------------------------------------------------------------------------
EXPENSES
  Investment Advisory Fees                                                                                        1,632
  Custodian Fees                                                                                                    500
  Administrative Fees                                                                                               195
  Professional Fees                                                                                                 147
  Shareholder Reporting Expenses                                                                                     74
  Directors' Fees and Expenses                                                                                       50
  Transfer Agent Fees                                                                                                15
  Other Expenses                                                                                                    117
- ------------------------------------------------------------------------------------------------------------------------
    Total Expenses                                                                                                2,730
- ------------------------------------------------------------------------------------------------------------------------
      Net Investment Loss                                                                                          (839)
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) ON:
  Investments                                                                                                   (44,336)
  Foreign Currency Transactions                                                                                      35
- ------------------------------------------------------------------------------------------------------------------------
    Net Realized Loss                                                                                           (44,301)
- ------------------------------------------------------------------------------------------------------------------------
CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION ON:
  Investments                                                                                                   (27,731)
  Foreign Currency Translations                                                                                     (97)
- ------------------------------------------------------------------------------------------------------------------------
    Change in Unrealized Appreciation/Depreciation                                                              (27,828)
- ------------------------------------------------------------------------------------------------------------------------
Net Realized Loss and Change in Unrealized Appreciation/Depreciation                                            (72,129)
- ------------------------------------------------------------------------------------------------------------------------
  NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS                                                    $     (72,968)
- ------------------------------------------------------------------------------------------------------------------------
</Table>

<Table>
<Caption>

                                                                                           SIX MONTHS ENDED
                                                                                             JUNE 30, 2001      YEAR ENDED
                                                                                              (UNAUDITED)    DECEMBER 31, 2000
STATEMENT OF CHANGES IN NET ASSETS                                                               (000)            (000)
- ------------------------------------------------------------------------------------------------------------------------------
<S>                                                                                             <C>                <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
  Net Investment Income (Loss)                                                                  $     (839)        $       685
  Net Realized Gain (Loss)                                                                         (44,301)            159,432
  Change in Unrealized Appreciation/Depreciation                                                   (27,828)           (409,116)
- ------------------------------------------------------------------------------------------------------------------------------
  Net Decrease in Net Assets Resulting from Operations                                             (72,968)           (248,999)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions:
  Net Realized Gain                                                                                (17,077)            (44,923)
- ------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
  Repurchase of Shares (8,407,288 and 1,377,900 shares, respectively)                              (94,919)            (52,231)
- ------------------------------------------------------------------------------------------------------------------------------
  Total Decrease                                                                                  (184,964)           (346,153)
- ------------------------------------------------------------------------------------------------------------------------------
Net Assets:
  Beginning of Period                                                                              390,190             736,343
- ------------------------------------------------------------------------------------------------------------------------------
  End of Period (including accumulated net investment loss of $1,591 and $752,  respectively)   $  205,226         $   390,190
- ------------------------------------------------------------------------------------------------------------------------------
</Table>


    The accompanying notes are an integral part of the financial statements.

                                        8
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
FINANCIAL HIGHLIGHTS

SELECTED PER SHARE DATA AND RATIOS

<Table>
<Caption>


                                                                     YEARS ENDED DECEMBER 31,
                                 SIX MONTHS        ----------- ----------- ----------- ----------- --------------
                                      ENDED              2000        1999        1998        1997         1996
                              JUNE 30, 2001
                                (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------
<S>                                <C>               <C>         <C>         <C>         <C>         <C>
NET ASSET VALUE                    $  13.92          $  22.59    $   9.19    $   8.83    $   8.81    $    8.91
    BEGINNING OF PERIOD
- -----------------------------------------------------------------------------------------------------------------
Net Investment Income
 (Loss)                               (0.05)             0.02       (0.08)      (0.04)      (0.07)       (0.08)
Net Realized and Unrealized
 Gain (Loss) on
 Investments                          (2.79)            (7.93)      13.33        0.31        0.09        (0.02)
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
   Total from Investment
     Operations                       (2.84)            (7.91)      13.25        0.27        0.02        (0.10)
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
Distributions:
  Net Realized Gain                   (0.87)            (1.60)         --          --          --           --
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
Anti--Dilutive Effect of
  Shares Repurchased                   0.25              0.84        0.15        0.09          --           --
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
NET ASSET VALUE, END OF
  PERIOD                           $  10.46          $  13.92    $  22.59    $   9.19    $   8.83    $    8.81
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
PER SHARE MARKET VALUE,
  END OF PERIOD                    $   8.35          $  11.06    $  16.50    $   6.75    $   8.38   $     9.50
- ----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT RETURN:
- -----------------------------------------------------------------------------------------------------------------
  Market Value                       (16.53)%          (23.49)%    144.44%     (19.40)%    (11.84)%       4.11%
- -------------------------------- ----------------- ----------- ------------ ------------ ------------- ----------
  Net Asset Value (1)                (16.90)%          (29.68)%    145.81%       4.08%       0.23%       (1.12)%
- -------------------------------- ----------------- ----------- ------------ ------------ ------------- ----------
RATIOS, SUPPLEMENTAL DATA:
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
NET ASSETS, END OF PERIOD          $205,226          $390,190    $736,343    $314,701    $315,446    $ 314,423
 (THOUSANDS)
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
Ratio of Expenses to                                          .           .           .           .
    Average Net Assets                 1.83%(*)          1.48%       1.59%       1.97%       2.06%        2.10%
Ratio of Net Investment                                       .           .           .           .
    Income (Loss) to
    Average Net Assets                (0.55)%(*)         0.12%      (0.55)%     (0.44)%     (0.70)%      (0.85)%
Portfolio Turnover Rate                  34%               44%         34%         24%         25%          28%
- -------------------------------- ----------------- ----------- ----------- ----------- ----------- --------------
</Table>

*   Annualized
(1) Total investment return based on net asset value per share reflects the
    effects of changes in net asset value on the performance of the Fund during
    each period, and assumes dividends and distributions, if any, were
    reinvested. This percentage is not an indication of the performance of a
    shareholder's investment in the Fund based on market value due to
    differences between the market price of the stock and the net asset value
    per share of the Fund.

    The accompanying notes are an integral part of the financial statements.

                                        9
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.
JUNE 30, 2001 (UNAUDITED)

NOTES TO FINANCIAL STATEMENTS

   The Morgan Stanley India Investment Fund, Inc. (the "Fund") was incorporated
in Maryland on December 22, 1993, and is registered as a non-diversified,
closed-end management investment company under the Investment Company Act of
1940, as amended. The Fund's investment objective is long-term capital
appreciation through investments primarily in equity securities.

A. ACCOUNTING POLICIES: The following significant accounting policies are in
conformity with generally accepted accounting principles for investment
companies. Such policies are consistently followed by the Fund in the
preparation of its financial statements. Generally accepted accounting
principles may require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual results
may differ from those estimates.

1. SECURITY VALUATION: In valuing the Fund's assets, all listed securities for
   which market quotations are readily available are valued at the last sales
   price on the valuation date, or if there was no sale on such date, at the
   mean between the current bid and asked prices. Securities which are traded
   over-the-counter are valued at the mean of current bid and asked prices
   obtained from brokers. Short-term securities which mature in 60 days or less
   are valued at amortized cost. All other securities and assets for which
   market values are  not readily available (including investments which are
   subject to limitations as to their sale, if any) are valued at fair value as
   determined in good faith under procedures approved by the Board of Directors.
   Due to the Indian securities market's smaller size, degree of liquidity and
   volatility, the prices which the Fund may realize upon sale of securities may
   not be equal to the value presented in the financial statements.

2. TAXES: It is the Fund's intention to continue to qualify as a regulated
   investment  company and distribute all of its taxable income.  Accordingly,
   no provision for U.S. Federal income taxes is required in the financial
   statements.

   The rate of capital gains tax in India is 10% for long-term investments and
   30% for short-term investments. The Fund invests in India through a
   registered branch office established in Mauritius and expects to obtain
   benefits under the double taxation treaty between Mauritius and India. To
   obtain benefits under the double taxation treaty the Fund must meet certain
   tests and conditions, including the establishment of Mauritius tax
   residence and related requirements. The Fund has obtained a tax residence
   certification from the Mauritian authorities and believes such
   certification is determinative of its resident status for treaty purposes.
   A fund which is a tax resident in Mauritius under the treaty but has no
   branch or permanent establishment in India, will not be subject to capital
   gains tax in India on the sale of securities. The Fund is subject to and
   accrues Indian withholding tax on interest earned on Indian securities at
   the rate of 20%.

   In Mauritius, the Fund is liable for income tax under the current Mauritian
   legislation at the rate of 0%. However, the Fund may, in any year, elect to
   pay tax on its net investment income at any rate between 0% and 35%. The
   Fund has elected to pay tax at the rate of 1% on its net investment income.
   For the six months ended June 30, 2001, no provision for Mauritius taxes is
   considered necessary as a result of cumulative net investment losses
   incurred by the Fund.

   The foregoing is based on current interpretation and practice and is
   subject to any future changes in Indian or Mauritian tax laws and in the
   tax treaty between India and Mauritius.

3. REPURCHASE AGREEMENTS: The Fund may enter into repurchase agreements under
   which the Fund lends excess cash and takes possession of securities with an
   agreement that the counterparty will repurchase such securities. In
   connection with transactions in repurchase agreements, a bank as custodian
   for the Fund takes possession of the underlying securities (collateral),
   with a market value at least equal to the amount of the repurchase
   transaction, including principal and accrued interest. To the extent that
   any repurchase transaction exceeds one business day, the value of the
   collateral is marked-to-market on a daily basis to determine the adequacy
   of the collateral. In the event of default on the obligation to repurchase,
   the Fund has the right to liquidate the collateral and apply the proceeds
   in satisfaction of the obligation. In the event of default or bankruptcy by
   the counterparty to the agreement, realization and/or retention of the
   collateral or proceeds may be subject to legal proceedings.

   The Fund, along with other affiliated investment companies, may utilize a
   joint trading account for the purpose of entering into one or more
   repurchase agreements.

4. FOREIGN CURRENCY  Translation:  The books and records of the Fund are
   maintained in U.S. dollars.  Amounts denominated in Indian rupees are
   translated  into U.S.  dollars at the mean of the bid and asked prices of
   such currency  against U.S. dollars last quoted by a major bank as follows:

                                       10
<Page>

   - investments, other assets and liabilities - at the prevailing rate of
     exchange on the valuation date;
   - investment transactions and investment income - at the prevailing rate of
     exchange on the dates of such transactions.

   Although the net assets of the Fund are presented at the foreign exchange
   rate and market values at the close of the period, the Fund does not isolate
   that portion of the results of operations arising as a result of changes in
   the foreign exchange rate from the fluctuations arising from changes in the
   market prices of the securities held at period end. Similarly, the Fund does
   not isolate the effect of changes in the foreign exchange rate from the
   fluctuations arising from changes in the market prices of securities sold
   during the period. Accordingly, realized and unrealized foreign currency
   gains (losses) due to securities transactions are included in the reported
   net realized and unrealized gains (losses) on investment transactions and
   balances.

   Net realized gains (losses) on foreign currency transactions represent net
   foreign exchange gains (losses) from sales and maturities of foreign currency
   exchange contracts, disposition of foreign currency, currency gains or losses
   realized between the trade and settlement dates on securities transactions,
   and the difference between the amount of investment income and foreign
   withholding taxes recorded on the Fund's books and the U.S. dollar equivalent
   amounts actually received or paid. Net unrealized currency gains (losses)
   from valuing foreign currency denominated assets and liabilities at period
   end exchange rates are reflected as a component of unrealized appreciation
   (depreciation) on investments and foreign currency translations in the
   Statement of Net Assets. The change in unrealized currency gains (losses) on
   foreign currency translations for the period is reflected in the Statement of
   Operations.

   Foreign security and currency transactions may involve certain considerations
   and risks not typically associated with those of U.S. dollar denominated
   transactions as a result of, among other factors, the possibility of lower
   levels of governmental supervision and regulation of foreign securities
   markets and the possibility of political or economic instability.

The Fund may use derivatives to achieve its investment objectives. The Fund may
engage in transactions in futures contracts on foreign currencies, stock
indices, as well as in options, swaps and structured notes. Consistent with the
Fund's investment objectives and policies, the Fund may use derivatives for
non-hedging as well as hedging purposes.

Following is a description of derivative instruments that the Fund may utilize
and their associated risks:

5. FOREIGN CURRENCY EXCHANGE CONTRACTS: The Fund may enter into foreign
   currency exchange contracts generally to attempt to protect securities and
   related receivables and payables against changes in future foreign exchange
   rates and, in certain situations, to gain exposure to a foreign currency. A
   foreign currency exchange contract is an agreement between two parties to buy
   or sell currency at a set price on a future date. The market value of the
   contract will fluctuate with changes in currency exchange rates. The contract
   is marked-to-market daily and the change in market value is recorded by the
   Fund as unrealized gain or loss. The Fund records realized gains or losses
   when the contract is closed equal to the difference between the value of the
   contract at the time it was opened and the value at the time it was closed.
   Risk may arise upon entering into these contracts from the potential
   inability of counterparties to meet the terms of their contracts and is
   generally limited to the amount of unrealized gain on the contracts, if any,
   at the date of default. Risks may also arise from unanticipated movements in
   the value of a foreign currency relative to the U.S. dollar.

6. FORWARD COMMITMENTS AND WHEN-ISSUED/DELAYED DELIVERY SECURITIES: The Fund
   may make forward commitments to purchase or sell securities. Payment and
   delivery for securities which have been purchased or sold on a forward
   commitment basis can take place a month or more (not to exceed 120 days)
   after the date of the transaction. Additionally, the Fund may purchase
   securities on a when-issued or delayed delivery basis. Securities purchased
   on a when-issued or delayed delivery basis are purchased for delivery beyond
   the normal settlement date at a stated price and yield, and no income accrues
   to the Fund on such securities prior to delivery. When the Fund enters into a
   purchase transaction on a when-issued or delayed delivery basis, it either
   establishes a segregated account in which it maintains liquid assets in an
   amount at least equal in value to the Fund's commitments to purchase such
   securities or denotes such securities assets as segregated on the Fund's
   records. Purchasing securities on a forward commitment or when-issued or
   delayed-delivery basis may involve a risk that the market price at the time
   of delivery may be lower than the agreed upon purchase

                                       11
<Page>

   price, in which case there could be an unrealized loss at the time of
   delivery.

7. SWAP AGREEMENTS: The Fund may enter into swap agreements to exchange the
   return generated by one security, instrument or basket of instruments for the
   return generated by another security, instrument or basket of instruments.
   The following summarizes swaps which may be entered into by the Fund:

   INTEREST RATE SWAPS: Interest rate swaps involve the exchange of commitments
   to pay and receive interest based on a notional principal amount. Net
   periodic interest payments to be received or paid are accrued daily and are
   recorded in the Statement of Operations as an adjustment to interest income.
   Interest rate swaps are marked-to-market daily based upon quotations from
   market makers and the change, if any, is recorded as unrealized appreciation
   or depreciation in the Statement of Operations.

   TOTAL RETURN SWAPS: Total return swaps involve commitments to pay interest in
   exchange for a market-linked return based on a notional amount. To the extent
   the total return of the security, instrument or basket of instruments
   underlying the transaction exceeds or falls short of the offsetting interest
   obligation, the Fund will receive a payment from or make a payment to the
   counterparty, respectively. Total return swaps are marked-to-market daily
   based upon quotations from market makers and the change, if any, is recorded
   as unrealized gains or losses in the Statement of Operations. Periodic
   payments received or made at the end of each measurement period, but prior to
   termination, are recorded as realized gains or losses in the Statement of
   Operations.

   Realized gains or losses on maturity or termination of interest rate and
   total return swaps are presented in the Statement of Operations. Because
   there is no organized market for these swap agreements, the value reported in
   the Statement of Net Assets may differ from that which would be realized in
   the event the Fund terminated its position in the agreement. Risks may arise
   upon entering into these agreements from the potential inability of the
   counterparties to meet the terms of the agreements and are generally limited
   to the amount of net interest payments to be received and/or favorable
   movements in the value of the underlying security, instrument or basket of
   instruments, if any, at the date of default.

   Risks also arise from potential losses from adverse market movements, and
   such losses could exceed the related amounts shown in the Statement of Net
   Assets.

8. STRUCTURED SECURITIES: The Fund may invest in interests in entities organized
   and operated solely for the purpose of restructuring the investment
   characteristics of sovereign debt obligations. This type of restructuring
   involves the deposit with or purchase by an entity of specified instruments
   and the issuance by that entity of one or more classes of securities
   ("Structured Securities") backed by, or representing interests in, the
   underlying instruments. Structured Securities generally will expose the Fund
   to credit risks of the underlying instruments as well as of the issuer of the
   issuer of the Structured Security. Structured Securities are typically sold
   in private placement transactions with no active trading market. Investments
   in Structured Securities may be more volatile than their underlying
   instruments, however, any loss is limited to the amount of the original
   investment.

9. OVER-THE-COUNTER TRADING: Securities and other derivative instruments that
   may be purchased or sold by the Fund may consist of instruments not traded on
   an exchange. The risk of nonperformance by the obligor on such an instrument
   may be greater, and the ease with which the Fund can dispose of or enter into
   closing transactions with respect to such an instrument may be less, than in
   the case of an exchange-traded instrument. In addition, significant
   disparities may exist between bid and asked prices for derivative instruments
   that are not traded on an exchange. Derivative instruments not traded on
   exchanges are also not subject to the same type of government regulation as
   exchange traded instruments, and many of the protections afforded to
   participants in a regulated environment may not be available in connection
   with such transactions.

During the six months ended June 30, 2001, the Fund's investments in derivative
instruments described above included foreign currency exchange contracts only.

10.OTHER: Security transactions are accounted for on the date the securities
   are purchased or sold. Investments in new Indian securities are made by
   making applications in the public offerings. The issue price, or a portion
   thereof, is paid at the time of application and reflected as share
   application money on the Statement of Net Assets. Upon allotment of the
   securities, this amount plus any remaining amount of issue price is recorded
   as cost of investments. Realized gains and losses on the sale of investment
   securities are determined on the specific identified cost basis. Interest
   income is recognized on an accrual basis.

                                       12
<Page>

   Dividend income is recorded on the ex-dividend date (except certain dividends
   which may be recorded as soon as the Fund is informed of such dividend) net
   of applicable withholding taxes, if any. Distributions to shareholders are
   recorded on the ex-dividend date.

   The amount and character of income and capital gain distributions to be paid
   by the Fund are determined in accordance with Federal income tax regulations,
   which may differ from generally accepted accounting principles. The book/tax
   differences are either considered temporary or permanent in nature.

   Temporary differences are attributable to differing book and tax treatments
   for the timing of the recognition of gains and losses on certain investment
   transactions and the timing of the deductibility of certain expenses.

   Permanent book and tax basis differences may result in reclassifications
   among undistributed net investment income (loss), accumulated net realized
   gain (loss) and paid in capital.

   Adjustments for permanent book-tax differences, if any, are not reflected in
   ending undistributed net investment income (loss) for the purposes of
   calculating net investment income (loss) per share in the financial
   highlights.

B. ADVISER: Morgan Stanley Investment Management Inc. (formerly Morgan Stanley
Dean Witter Investment Management Inc.) (the "Adviser") provides investment
advisory services to the Fund under the terms of an Investment Advisory and
Management Agreement (the "Agreement"). Under the Agreement, the Adviser is paid
a fee computed weekly and payable monthly at an annual rate of 1.10% of the
Fund's average weekly net assets.

C. ADMINISTRATOR: The Chase Manhattan Bank, through its corporate affiliate J.P.
Morgan Investor Services Company (the "Administrator"), provides administrative
services to the Fund under an Administration Agreement. Under the Administration
Agreement, the Administrator is paid a fee computed weekly and payable monthly
at an annual rate of 0.09% of the Fund's average weekly net assets, plus $65,000
per annum. In addition, the Fund is charged certain out-of-pocket expenses by
the Administrator.

Multiconsult, Ltd., whose registered office is in Mauritius, provides
sub-administrative services to the Fund, including maintaining certain Fund
records and preparing certain periodic filings, under an agreement whereby
Multiconsult is paid a fee of $22,000 per annum.

D. CUSTODIAN: The Chase Manhattan Bank serves as custodian for the Fund. Custody
fees are payable monthly based on assets held in custody, investment purchase
and sales activity and account maintenance fees, plus reimbursement for certain
out-of-pocket expenses.

E. OTHER: During the six months ended June 30, 2001, the Fund made purchases and
sales totaling $96,264,000 and $170,898,000, respectively, of investment
securities other than long-term U.S. Government securities and short-term
investments. There were no purchases or sales of long-term U.S. Government
securities. At June 30, 2001, the U.S. Federal income tax cost basis of
securities was $271,122,000 and, accordingly, net unrealized depreciation for
U.S. Federal income tax purposes was $61,331,000 of which $30,625,000 related to
appreciated securities and $91,956,000 related to depreciated securities.

A significant portion of the Fund's net assets consist of Indian securities
which involve certain considerations and risks not typically associated with
investments in the United States. In addition to its smaller size, less
liquidity and greater volatility, the Indian securities market is less developed
than the U.S. securities market and there is often substantially less publicly
available information about Indian issuers than there is about U.S. issuers.
Settlement mechanisms are also less developed and are accomplished, in certain
cases, only through physical delivery, which may cause the Fund to experience
delays or other difficulties in effecting transactions. At June 30, 2001,
approximately $8,308,000 of Fund securities were either out for transfer in the
name of the Fund, were under objection for transfer in the name of the Fund,
were out for dematerialization, or were due from companies and/or brokers for
various capital changes. Such securities are valued in accordance with the
Fund's security valuation policy as described in Note A-1, but may not be
saleable at the value shown in the Statement of Net Assets. The Fund has no
intention of selling such securities until they are transferred in the name of
the Fund.

Future economic and political developments in India could adversely
affect the liquidity or value, or both, of securities in which the Fund is
invested. In addition, the Fund's ability to hedge its currency risk is limited
and accordingly, the Fund may be exposed to currency devaluation and other
exchange rate fluctuations.

Each Director of the Fund who is not an officer of the Fund or an affiliated
person as defined under the Investment Company Act of 1940, as amended, may
elect to participate in the Directors' Deferred Compensation Plan (the "Plan").
Under the Plan, such Directors may elect to defer payment of a percentage of
their total fees earned as a Di-

                                       13
<Page>

rector of the Fund. These deferred portions are treated, based on an election by
the Director, as if they were either invested in the Fund's shares or invested
in U.S. Treasury Bills, as defined under the Plan. At June 30, 2001, the
deferred fees payable under the Plan totaled $69,000 and are included in Payable
for Directors' Fees and Expenses on the Statement of Net Assets.

On August 10, 1998, the Fund commenced a share repurchase program for purposes
of enhancing shareholder value and reducing the discount at which the Fund's
shares traded from their net asset value. For the six months ended June 30,
2001, there were no repurchases of Fund shares. Since the inception of the
program, the Fund has repurchased 7,682,800 of its shares at an average discount
of 31.03% from net asset value per share. The Fund expects to continue to
repurchase its outstanding shares at such time and in such amounts as it
believes will further the accomplishment of the foregoing objectives, subject to
review by the Board of Directors.

On December 14, 2000, with the aim of enhancing stockholder value and reducing
the discount at which the Fund's shares have been trading, the Board of
Directors authorized the Fund to conduct a tender offer during the first quarter
of 2001 for up to 30% of the Fund's outstanding shares of common stock at a
price equal to 95% of the Fund's net asset value per share ("NAV") on the last
day of the tender period, or such later date if the offer was extended.

On March 29, 2001, the Fund completed the tender offer. The Fund accepted
8,407,288 shares for payment which represented 30% of the Fund's then
outstanding shares. Final payment was made on April 12, 2001 at $11.29 per
share, representing 95% of the NAV per share on March 29, 2001.

During June 2001, the Board of Directors declared a distribution of $0.87 per
share, derived from capital gains, payable on July 10, 2001, to shareholders of
record on June 29, 2001.

F. SUPPLEMENTAL PROXY INFORMATION:

The Annual Meeting of the Stockholders of the Fund was held on June 14, 2001.
The following is a summary of the proposal presented and the total number of
shares voted:

PROPOSAL:
1. To elect the following Directors:

<Table>
<Caption>

                                       VOTES IN             VOTES
                                       FAVOR OF            AGAINST
<S>                                    <C>                <C>
Andrew McNally IV                       9,321,060         1,048,171
John S.Y. Chu                          10,281,679            87,532
Frederick O. Robertshaw                 9,321,060         1,048,171
Ronald E. Robison                       9,320,833         1,048,398
Fergus Reid                             9,321,060         1,048,171
Marie Joseph Raymond
Lamusse                                10,281,906           87,325
</Table>

                                       14
<Page>

Dividend Reinvestment And Cash Purchase Plan

Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the "Plan"), each
shareholder will be deemed to have elected, unless American Stock Transfer &
Trust Company (the "Plan Agent") is otherwise instructed by the shareholder in
writing, to have all distributions automatically reinvested in Fund shares.
Participants in the Plan have the option of making additional voluntary cash
payments to the Plan Agent, annually, in any amount from $100 to $3,000, for
investment in Fund shares.

Dividend and capital gain distributions will be reinvested on the reinvestment
date. If the market price per share equals or exceeds net asset value per share
on the reinvestment date, the Fund will issue shares to participants at net
asset value. If net asset value is less than 95% of the market price on the
reinvestment date, shares will be issued at 95% of the market price. If net
asset value exceeds the market price on the reinvestment date, participants will
receive shares valued at market price. The Fund may purchase shares of its
Common Stock in the open market in connection with dividend reinvestment
requirements at the discretion of the Board of Directors. Should the Fund
declare a dividend or capital gain distribution payable only in cash, the Plan
Agent will purchase Fund shares for participants in the open market as agent for
the participants.

The Plan Agent's fees for the reinvestment of dividends and distributions will
be paid by the Fund. However, each participant's account will be charged a pro
rata share of brokerage commissions incurred on any open market purchases
effected on such participant's behalf. A participant will also pay brokerage
commissions incurred on purchases made by voluntary cash payments. Although
shareholders in the Plan may receive no cash distributions, participation in the
Plan will not relieve participants of any income tax which may be payable on
such dividends or distributions.

In the case of shareholders, such as banks, brokers or nominees, which hold
shares for others who are the beneficial owners, the Plan Agent will administer
the Plan on the basis of the number of shares certified from time to time by the
shareholder as representing the total amount registered in the shareholder's
name and held for the account of beneficial owners who are participating in the
Plan.

Shareholders who do not wish to have distributions automatically reinvested
should notify the Plan Agent in writing. There is no penalty for
non-participation or withdrawal from the Plan, and shareholders who have
previously withdrawn from the Plan may rejoin at any time. Requests for
additional information or any correspondence concerning the Plan should be
directed to the Plan Agent at:

   Morgan Stanley India InvestmentFund, Inc.
   American Stock Transfer & Trust Company
   Dividend Reinvestment and Cash Purchase Plan
   40 Wall Street
   New York, NY 10005
   1-800-278-4353

                                       15
<Page>

MORGAN STANLEY INDIA INVESTMENT FUND, INC.

DIRECTORS AND OFFICERS
Barton M. Biggs                    Fergus Reid
CHAIRMAN OF THE BOARD OF           DIRECTOR
DIRECTORS
                                   Stefanie V. Chang
Ronald E. Robison                  VICE PRESIDENT
PRESIDENT AND DIRECTOR
                                   Arthur J. Lev
Gaetan Bouic II                    VICE PRESIDENT
DIRECTOR
                                   Joseph P. Stadler
John S.Y. Chu                      VICE PRESIDENT
DIRECTOR
                                   Mary E. Mullin
Clifford D'Souza                   SECRETARY
DIRECTOR
                                   Belinda A. Brady
Gerard E. Jones                    TREASURER
DIRECTOR
                                   Robin L. Conkey
Nilesh Joshi                       ASSISTANT TREASURER
DIRECTOR

Marie Joseph Raymond
Lamusse
DIRECTOR

INVESTMENT ADVISER
Morgan Stanley Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020

ADMINISTRATOR
The Chase Manhattan Bank
73 Tremont Street
Boston, Massachusetts 02108

CUSTODIAN
The Chase Manhattan Bank
3 Chase MetroTech Center
Brooklyn, New York 11245

SHAREHOLDER SERVICING AGENT
American Stock Transfer & Trust company
40 Wall Street
New York, New York 10005
(800) 278-4353

LEGAL COUNSEL
Clifford Chance Rogers & Wells LLP
200 Park Avenue
New York, New York 10166

INDEPENDENT AUDITORS
Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116


For additional Fund information, including the Fund's net asset value per share
and information regarding the investments comprising the Fund's portfolio,
please call 1-800-221-6726 or visit our website at www.morganstanley.com/im.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
