The latest round, coming on the back of a Chinese economic slowdown, beats the drum of optimism and India’s potential of regaining the world’s fastest growing economy tag. Forecasts peg India to be at the start of a large capex cycle, which can ensure a sustained real GDP growth of 7% in the medium-term. Yet, some like Morgan Stanley expect that a virtuous cycle is in the offing, supported by strong capex. Rising capex lifts employment and boosts income and consumption, creating a virtuous cycle. All said, the risks to the positive sentiment from external factors cannot be completely avoided or escaped.

Source: Indian Express October 23, 2021 01:44 UTC