· 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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