WebStorm by default takes the tsconfig.json in the root directory of a project. Is there any way that we can point this to custom tsconfig.json file path using the settings?
I can see the options in TypeScript section of WebStorm settings, but I cannot figure out the correct way to specify tsconfig.json.
You can use the -p option of the tsc command.
On webstorm, click on configure (the wrench)

Then add -p yourTsConfig.json in the Options field.

If Recompile on changes is enabled in Preferences | Languages & Frameworks | TypeScript, it uses the nearest tsconfig.json current file is included in, scanning folders from the file folder up to the project root.
If it's disabled, you can compile using Compile button in Typescript tool window toolbar - when pressing this button, you can choose a tsconfig.json to be used for compilation

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