India’s economic recovery is expected to have gathered momentum and GDP growth for the December quarter is likely to have accelerated to 7%, says a Morgan Stanley report.
The gross domestic product (GDP) grew by 6.3% in July-September quarter of the fiscal, up from 5.7% in the first quarter.
According to the global financial services major, growth in industry and the services sector is expected to have accelerated while growth in the agriculture sector decelerated.
“We expect the economic recovery to have gathered further momentum with GDP growth accelerating to 7.0% year-on-year in the December-17 quarter from 6.3% in the September quarter,” Morgan Stanley said in a research note.
In GVA terms, growth picked up further to 6.7% year-on-year from 6.1% in the previous quarter, the brokerage said.
According to the report, corporate revenue trends, which track industry GVA (gross value added) growth closely, also improved further in the December quarter.
Moreover, auto and two-wheeler sales posted robust growth in the December quarter beyond what was implied by favourable base effects, while goods exports growth improved further to double-digit levels, it added.
