New Delhi: Morgan Stanley, a renowned investment banking firm, is holding onto a bullish view on the growth prospects of the Indian economy. The view is being supported by the stronger short-term momentum and steady long-term fundamentals.
In an interview with CNBC-TV18, Morgan Stanley’s Seth Carpenter, who happens to be a chief global economist at the New York-headquartered investment banking firm, said India’s growth prospects remain robust due to both cyclical and structural drivers.
“The Indian economy is clearly quite strong. And we have, as a research house, been bullish on the Indian economy for quite some time,” Carpenter said.
He opined that inflation in India is softening, as evidenced by the recent inflation data, giving its central bank the scope to move ahead with rate cuts and promote growth. The slowdown in energy prices and a softening dollar are playing the crucial role in India’s growth and giving its central bank the ability to operate more freely on the rate cut front.
He also remarked on the efforts of the government in promoting infrastructural investments and establishing a business-friendly environment in India. He emphasised the long-term expansion of the Indian economy.
The strong statement from the chief economist is coming in the backdrop of the latest government data that said India grew over 7 percent in the last quarter of fiscal year 2025. The growth for the year is pegged at 6.5 percent, as per the government data. RBI, too in its annual report of 2024-25, emphasised on the strong growth prospects of Indian economy.
The economist gave a stern warning note on China’s growth prospects. The Chinese economy is softening amid a deflationary environment, and it is unlikely to bounce back, as per his view.
Morgan Stanley maintains a bullish stance on India’s economic growth, citing strong short-term momentum and solid long-term fundamentals. Chief Global Economist Seth Carpenter highlights softening inflation, allowing for potential rate cuts, and the government’s focus on infrastructure and a business-friendly environment as key drivers. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
