Morgan Stanley warns of Hindu rate of growth

Written by Press Trust of India | Mumbai | Updated: Aug 10 2013, 09:12am hrs
The economy is facing the spectre of slipping to Hindu rate of growth of the pre-liberalisation era and may fall to an abysmal 3.5-4% growth zone if the weak growth trend lasts for four-five quarters more, warns a Morgan Stanley report.

The recent monetary tightening and uncertain global capital market environment could mean growth stays low for at least two more quarters. A weak growth trend lasting for four-five quarters would increase the risk of a vicious cycle building, whereby the economy becomes vulnerable and the risk increases of GDP growth sliding to 3.5-4% , the report noted.