‘India’s economic indicators show re-acceleration’

The Indian economic indicators have started showing re-acceleration after a slowdown post festive season in October 2022, said Morgan Stanley. In a report, Morgan Stanley said the growth indicators for India had slowed post the festive season in October in a fairly broad-based manner raising investors’ concern. “However, growth indicators have started to show signs of re-acceleration in early 2023,” it notes. According to Morgan Stanley, healthy household balance sheets and a pickup in private and public capex will sustain gains in employment — which will allow consumption growth to stay strong in the coming quarters. “Government policies are still very much geared towards reviving private investment, which we expect will continue to unfold as strong trailing demand has already lifted capacity utilisation,” the report notes. The Indian budget for FY24 was another step in the right direction to crowd in private investment. As regards China’s growth, Morgan Stanley expects its economy to grow by 5.7 per cent this year, with much of the growth recovery underpinned by a revival in consumer spending.