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India’s growth forecast for FY13 slashed to 5.1% by Morgan Stanley

Written By Boneless Research on Monday, 3 September 2012 | 3.9.12


·        Negative outlook for Indian economy by global community continues as leading financial company Morgan Stanley cut its growth forecast for FY2013 to 5.1%

·        Weakening external demand, lower private investment as well as poor government finances are the key drivers for downward revision by the US investment house

·        As per the analysis of Morgan Stanley, higher fiscal deficit, robust wage growth in rural areas and declining private investment is leading to "stagflation-type environment"

·        Moreover, risk of deeper macro stress scenario of the Indian economy cannot be ruled out if government continues to be inactive and indecisive. As a result, growth could slid to even 4.3%

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