GDP growth likely to be 7% in December quarter
India's economic recovery is expected to have gathered momentum and GDP growth is likely to grow at its fastest pace at 7 per cent in the December quarter as consumers, businesses and the government stepped up spending, say two reports from Morgan Stanley and Reuters poll. 

The reports suggest that disruptions from a shock ban on high-value currency notes in November 2016 and the chaotic launch of a goods and services tax (GST) in July are fading. 

India's 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 Morgan Stanley, 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 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 gross value-added (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. 

In the latest quarter, "government spending was stronger and private consumption demand was robus.
 
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