Morgan Stanley sees 11% nominal GDP growth for India over the next 12 months
Morgan Stanley thinks India's economy could see a solid 11% nominal growth over the next 12 months.
This upbeat forecast comes as both the government and RBI roll out policies to keep the economy moving, according to Ridham Desai, Morgan Stanley India's Managing Director.
Desai expects 2 more interest rate cuts over the next 12 months
Since February, the RBI has been taking steps—like its recent October policy—to boost loan growth, which could hit 12-13% soon.
With consumer demand picking up, Desai expects the RBI to cut interest rates two more times over the next 12 months, making it easier for people and businesses to borrow and spend.
India's recovery is on track, says Desai
Desai also highlighted that stronger bank profits might help lift the stock market over the next year.
With more spending and supportive policies, India's recovery looks on track, backing up the 11% growth forecast—even as the world economy stays unpredictable.