Morgan Stanley raises India's FY10 growth forecast

Reuters    Translate This Article
2 December 2009

MUMBAI (Reuters) - The economy may grow at 6.7 percent in 2009/10, Morgan Stanley said in a report, raising its estimate from 6.4 percent after data showed the economy grew at its fastest rate in 18 months in the September quarter.

Asia's third-largest economy grew 7.9 percent in the past quarter from a year earlier, far above forecasts of 6.3 percent and fastest in any quarter since June 2008.

'We believe better traction to fiscal as well as monetary policy measures and revival in capital inflows appears to be pushing domestic demand,' economists Chetan Ahya and Tanvee Gupta wrote in a note dated Nov 30.

Morgan Stanley revised its industrial production to average 8.8 percent year-on-year in 2009/10 from its earlier estimate of 8 percent and services growth to rise to 8.6 percent from 8.4 percent, due to higher growth in trade, hotels, transport and communications.

Morgan Stanley said poor agriculture growth due to weak monsoons has been pushed to the quarter-ended December 2009 and it expects agriculture output to decline by 2.4 percent in 2009/10 from its earlier estimate of -2.7 percent.

Ahya and Gupta have retained their inflation estimate of 6.5 percent by end-March 2010 and expect the central bank to lift policy rates by 25 basis points in January 2010.

'This potential rate hike is unlikely to derail the recovery as we view this expected increase in rates as a move toward normalization rather than as a tightening that will hurt growth,' the note said.

(Reporting by Neha D'silva; Editing by Ramya Venugopal)

Copyright 2009 Reuters. Reprinted with permission from Reuters. Reuters content is the intellectual property of Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Reuters and the Reuters Sphere Logo are registered trademarks of the Reuters group of companies around the world. For additional information about Reuters content and services, please visit Reuters website at www.reuters.com.  License # REU-5918-MES

Every day Global Good News documents the rise of a better quality of life dawning in the world from good news reported by the press; and highlights the need for introducing Natural Law based-Total Knowledge based-programmes to bring the support of Nature to every individual, raise the quality of life of every society, and create a lasting state of world peace.



Translation software is not perfect; however if you would like to try it, you can translate this page using:

(Google) Select a language English to Afrikaans English to Albanian English to Arabic English to Belarusian English to Bulgarian English to Catalan English to Chinese (Simplified) English to Chinese (Traditional) English to Croatian English to Czech English to Danish English to Dutch English to Estonian English to Filipino English to Finnish English to French English to Galician English to German English to Greek English to Hebrew English to Hindi English to Hungarian English to Icelandic English to Indonesian English to Irish English to Italian English to Japanese English to Korean English to Latvian English to Lithuanian English to Macedonian English to Malay English to Maltese English to Norwegian English to Persian English to Polish English to Portuguese English to Romanian English to Russian English to Serbian English to Slovak English to Slovenian English to Spanish English to Swahili English to Swedish English to Thai English to Turkish English to Ukrainian English to Vietnamese English to Welsh English to Yiddish

(Altavista babelfish) Select a languageEnglish to Chinese-simpEnglish to Chinese-tradEnglish to DutchEnglish to PortugueseEnglish to FrenchEnglish to GermanEnglish to GreekEnglish to ItalianEnglish to JapaneseEnglish to KoreanEnglish to RussianEnglish to Spanish

Send Good News to Global Good News.

Your comments.