Morgan Stanley GEF: “India On The Move”
Morgan Stanley publishes a set of economic articles (daily) under the title “Global Economic Forum“. Yesterday’s edition includes a trip report by Stephen Roach - “India on the Move“.
Excerpts:
* Official data now put national saving at 32.4% in the 12 months ending March 2006 — up significantly from the 25% average of the 1990 to 2004 period. At the same time, the aggregate investment ratio has moved up to 33.4% as of March 2006 — a major breakout from the 26% average of the preceding 15 years.
* Infrastructure, however, remains a glaring laggard — likely to have held around 4.3% of Indian GDP in the 12 months ending March 2007 and little different from the range prevailing since the early 1990s.
* Ridham Desai, our India equity strategist, believes that any corrections in the 15-20% range should be viewed as an important buying opportunity.
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