Neha Dhamija
Owing to the bleak financial conditions, Morgan Stanley cut down on its estimation for expected growth rate of India. In a recent note, the company said that it anticipates the value to be 6.7% for the present fiscal year.
It said that low domestic demands prompted it to have such expectation.
Moving on the same lines, the values for 2009-10 too, have been sliced. The magnitude, which earlier stood at 5.3 percent was dropped to 4.4 percent due to less capital flows and drowning export demand. These situations are just the reverse of what takes a nation on a ‘progressive path’, as theorized by economists at Morgan Stanley, Chetan Ahya and Tanvee Gupta.
The capital flows are to continue being low because of the ‘lack of confidence in investors’ and ‘risk aversion approach’ being adopted by majority of them.
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