India current economic boom period is like 2003-07 Morgan Stanley
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New Delhi: India’s current economic growth, which is moving forward on the basis of investment, looks like that of 2003-07. At that time the economic growth rate was more than 8 percent on average. Economists of Morgan Stanley have said this.
Morgan Stanley in a report ‘The Viewpoint: India – Why this feels like 2003-07’ said that after a decade of continuous decline in investment relative to GDP, capital expenditure has now emerged as the key driver of growth in India. According to the report, we think there is enough scope for a capital expenditure cycle and hence the current uptick is similar to that of 2003-07.
Economists at Morgan Stanley said the current boom is due to investment increasing more than consumption. This was initially supported by public capital expenditure, but private capital expenditure is also increasing. Similarly, consumption was first supported by urban consumers and later rural demand also increased. The economy has also been supported by increasing market share in global exports and macroeconomic stability. The report said, we believe that the current boom is due to increase in investment compared to GDP.
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