India economy seen slowing in July-September quarter – Morgan Stanley

In the view of the analysts at Morgan Stanley, India’s GDP growth is likely to decelerate to 4.4% YoY in July-September from 5% booked in the previous quarter.

Key Quotes:

“We expect growth to decelerate in F2020 to 5% as high frequency growth data remain weak.

As such, we build in a slow recovery in 2020 on a low base effect, traction from past policy actions and expectation of global recovery from 1Q20.

However, risks remain skewed to the downside from slower response from policy actions, longer-than-expected stabilization in demand conditions, renewed signs of credit stress affecting flow of resources and weaker global growth.”

India’s July-September GDP data is due for release on Nov. 29th.

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