Home / Knowledge / News / Textiles / Morgan Stanley cuts India's 2016 GDP estimate to 7.5%
Morgan Stanley cuts India's 2016 GDP estimate to 7.5%
16
Mar '16
Global financial services firm Morgan Stanley has scaled down its growth forecast for India for 2016 to 7.5 per cent from 7.9 per cent previously. It noted that the country's economy is expected to see tepid recovery mainly due to external factors.

Morgan Stanley said that though the domestic macro environment has been improving steadily in the last two years, the pace of recovery has been slower than anticipated, reined in by weak external demand conditions

“We are revising down our growth estimate for 2016 to 7.5 per cent from 7.9 per cent previously and for 2017 to 7.7 per cent from 8 per cent,” Morgan Stanley said in a research note.

Despite the downward revision, the global brokerage firm said there is a slow recovery in growth driven by domestic factors.

“We expect the recovery in growth to be driven by domestic drivers – urban consumption and a revival in public capex. We expect the rise in foreign investment inflows to support the revival in capex further,” the report noted.

The report said the country's macro stability conditions are likely to remain in check with a low chance of “overheating”. It expects the current account deficit (CAD) and inflation to remain moderate.

While external demand conditions continue to be slow, Indian exports have been contracting (in value terms) over the last 14 months, with a broad-based decline in commodity and non-commodity exports. Services exports have followed a similar trajectory, with growth slowing to 0.4 per cent in 2015 from 5.1 per cent in 2014.

It said the recovery in private sector capex has been tepid, with a muted rise in projects under implementation in 2015. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search