Morgan Stanley sees India 2012 GDP growth decelerate to 6.9%

Morgan Stanley says it sees India’s GDP growth decelerating to 6.9 per cent in 2012 from an earlier estimate of 7.4 per cent.

A combination of high and persistent inflation, slow pace of policy reforms to boost investment, graft-related investigations, weak global capital markets and economy has begun to weigh on India’s growth trend, Morgan Stanley said in a note.

“We expect further significant deceleration in domestic demand in the coming months,” it added.