Expect shallow economic recovery and growth of 7.1% in H2FY20, says Morgan Stanley
Updated : June 27, 2019 12:14 PM IST
The Indian economy is going through a cyclical slowdown led by both slower external demand and domestic challenges. We expect a shallow recovery, and growth to improve to ~7.1 percent in H2FY20 from 6.2 percent in H1FY20, said Morgan Stanley in its research report.
It said, "There are key domestic challenges facing the economy- risk aversion among lenders, risk aversion in the corporate sector, and prolonged weakness in the capex cycle."
"At a time when external challenges are lingering and domestic issues are still in play, we see a need a concerted push on the policy front to boost growth and employment," added the research house.