India's GDP to grow at 6.3% in 2015: Morgan Stanley

Singapore: India's gross domestic product is expected to grow by 6.3 per cent in 2015, according to Morgan Stanley's forecast of global economies.

The Indian rupee's exchange rate to the US dollar would be at Rs 62.2 by end of next year, according to a presentation made at the Morgan Stanley's Annual Asia Pacific Summit held here from November 12-14.

It is seen at Rs 62.5 in the first two quarters of next year and Rs 62.3 in the third quarter of next year.

India's gross domestic product is expected to grow by 6.3 per cent in 2015, up from 5.3 this year, it said. "We are constructive on the rupee from the outlook perspective," said Morgan Stanley's Chief Asia Economist Chetan Ahya.

"Strong capital inflow and the current account deficit under-two per cent would add upward pressure on the Rupee. Reforms are providing confidence in the Indian economy growth. The Indian government's policy action to improve business environment and lower oil prices are among the factors supporting the GDP growth," Mr Ahya said.

"Structural reforms related to land, labour and tax supporting the economic growth would support economic growths in the coming years. The risk would be any disruption to execution and delivery of reforms as well as a slowdown in exports," he pointed out.

Meanwhile, Morgan Stanley has forecasted a sub-par global growth at 3.5 per cent in 2015, up nominally from 3.1 per cent this year. In Asia, China's GDP is forecasted to contract to 7.1 per cent in 2015 from 7.3 per cent in 2014.