India GDP growth could decelerate to 6.6% in 2012: Morgan Stanley

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

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.

Reuters