Morgan Stanley expressed confidence that the pace of development will continue despite the coalition government

Despite India's formation of a coalition government, global brokerage firm Morgan Stanley remains optimistic about the economic outlook. It believes that the coalition government will continue to prioritize policy reforms and that the country's progress will remain steady.

Morgan Stanley India MD Ridham Desai stated that the government led by Prime Minister Narendra Modi will implement basic reforms to accelerate India's economic growth. On the issue of coalition government, he stated that if we exclude 2014 and 2019, India has been under coalition government since 1989. Ridham is confident that the current government will be able to complete its five-year term.

Ridham said, 'I don't think there will be any change in the economic policies of the government. The government's focus will be on bringing stability at the macro level. It will also work on creating a supply chain. The government will focus the most on these two things. India's growth rate will remain between 7 and 8 percent. At the same time, inflation will also remain under control.'

Foreign institutional investors have been selling continuously since the beginning of the Lok Sabha elections. On a question related to this, Ridham said, 'At present, there are two big players in the market, first domestic investors and second foreign investors. Right now domestic investors are buying. In such an environment, foreign investors do not want to take chances. As soon as corporates start raising money, foreign investors will also start entering the market. Their purchases may start in the next 6 months.'

Equity mutual fund inflows rose to Rs 34,697 crore in May. This is 83.42 percent more than the previous month.