Financial consultancy and research firm Morgan Stanley has come out with a report which predicts India’s gross domestic product (GDP) growth to rise by 7.9 per cent by this December. The report also says that India is entering a ‘productive growth phase’, considering the favourable external demand and improving corporate balance sheet.
Morgan Stanley’s research concludes that growth will accentuate by almost 1 per cent over the next three financial quarters. The report says that India’s real estate sector is likely to benefit from its young work force which is nearing ‘home buying age’. It also estimates that China’s property boom could be seen in China.
“If India can maintain its political and social stability and sustain real gross domestic product growth of 6.5-7.5 per cent over the next few years, it should generate strong employment and income growth, both of which could drive property sector demand,” Sameer Baisiwala of Morgan Stanley said in a statement.
The report is optimistic on implementation of the goods and services tax and says it should “lead to efficiency gains through better allocation of factors of production”. The report also predicts improvement in many sectors will collectively help increase the GDP growth of the country.
Earlier, industry body Federation of Indian Chambers of Commerce and Industry’s latest economic outlook survey pegged India’s GDP growth at around 7.4 percent for the 2017-18 fiscal.
