Free Press Journal

GDP overstated: Morgan Stanley

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New Delhi:  Terming India’s GDP number as “overstated”, Morgan Stanley’s Chief Global Strategist Ruchir Sharma has called for more private investment for the economy to get back on track. “I think India’s GDP data is overstated,” Sharma told PTI.

 Indian economy grew 7.9 per cent in the fourth quarter of 2015-16, taking the overall GDP expansion to a 5-year high of 7.6 per cent for the fiscal. Sharma seemed fine with the overall investment in India, but “it has largely been supported by the government”.

 “The private sector investment is still not picking up in India,” he noted, linking low sustainable inflation to “very high” level of investment. RBI’s decision to bring inflation to 5 per cent this year, he said, is in line with emerging market economies’ average.