India's December quarter GDP growth likely to be 7%: Report

India's economic recovery is expected to have gathered momentum and GDP growth for the December quarter is likely to have accelerated to 7 per cent, says a Morgan Stanley report. India's gross domestic product (GDP) grew by 6.3 per cent in July-September quarter of the fiscal, up from 5.7 per cent in the first quarter. According to the global financial services major, growth in the industry and services sector is expected to have accelerated while growth in the agriculture sector decelerated.

"We expect the economic recovery to have gathered further momentum with GDP growth accelerating to 7.0 per cent year-on-year in the December-17



quarter from 6.3 per cent in the September quarter," Morgan Stanley said in a research note.

In GVA terms, growth picked up further to 6.7 per cent year-on-year from 6.1 per cent in the previous quarter, the brokerage said. According to the report, corporate revenue trends, which track industry GVA growth closely, also improved further in the December quarter. 

Moreover, auto and two-wheeler sales posted robust growth in the December quarter beyond what was implied by favourable base effects, while goods exports growth improved further to double-digit levels, it added.