India’s GDP growth rate is likely to accelerate gradually and inflation is expected to remain below 5 per cent over the next two years, says a Morgan Stanley report.
According to the global financial services major, factors like discretionary consumption, public sector capex and foreign private investment flows are supporting the India growth story, while weak external demand conditions in the global markets are holding back the pace of growth.
“Growth trajectory is showing signs of a recovery led by public capex and discretionary consumer spending, however, the pace of recovery remains slow.”