03-30-2004, 07:24 AM
<b>Indian economy doing well: Morgan Stanley</b>
Press Trust of India
New Delhi, March 29: Appreciative of India's economic performance, international investment banker Morgan Stanley said on Monday the domestic economy was more integrating with the global ones and corporate houses were focusing on cutting cost to be competitive.
"India is certainly performing well...The economy is increasingly getting integrated with the global economy," Morgan Stanley, Chief Economist and Managing Director Stephen Roach, said here.
Speaking at a CII seminar on 'Global Re-balancing: Day of Reckonining,' he said India's corporate houses were more focused on cutting costs than ever before and outsourcing was one of the options before the country to leverage growth.
He indicated that outsourcing of manufacturing to India was quite possible if the bottlenecks were removed.
Moreover, he said, there was ignorance among the global investors as far as the economic reforms were concerned.
Talking about the growing debate on the issue of outsourcing, Roach said the Presidential elecions in the US had raised it to political level.
"Outsourcing has become more of a politicial issue in the US," he said, adding that the future was dependent on who would win the election.
<b>On the Chinese economy, he said it was destined to slow down since there had been overheating on infrastructure and credit. </b>
He said re-balancing in the global economy was inevitable since the dollar was likely to weaken in the international market because of its high current account deficit
Press Trust of India
New Delhi, March 29: Appreciative of India's economic performance, international investment banker Morgan Stanley said on Monday the domestic economy was more integrating with the global ones and corporate houses were focusing on cutting cost to be competitive.
"India is certainly performing well...The economy is increasingly getting integrated with the global economy," Morgan Stanley, Chief Economist and Managing Director Stephen Roach, said here.
Speaking at a CII seminar on 'Global Re-balancing: Day of Reckonining,' he said India's corporate houses were more focused on cutting costs than ever before and outsourcing was one of the options before the country to leverage growth.
He indicated that outsourcing of manufacturing to India was quite possible if the bottlenecks were removed.
Moreover, he said, there was ignorance among the global investors as far as the economic reforms were concerned.
Talking about the growing debate on the issue of outsourcing, Roach said the Presidential elecions in the US had raised it to political level.
"Outsourcing has become more of a politicial issue in the US," he said, adding that the future was dependent on who would win the election.
<b>On the Chinese economy, he said it was destined to slow down since there had been overheating on infrastructure and credit. </b>
He said re-balancing in the global economy was inevitable since the dollar was likely to weaken in the international market because of its high current account deficit