Indian economy to continue on growth track despite coalition govt: Ridham Desai

New Delhi, June 11 (IANS) Global brokerage firm Morgan Stanley is optimistic about Indian economic growth despite the coalition government.

Ridham Desai, MD of Morgan Stanley India, asserted that under PM Narendra Modi's leadership, the government will implement structural reforms that drive Indian economic growth.

On the coalition government, he said that except for 2014 and 2019, coalition governments have been running in India since 1989. This government will last for the next five years.

“I do not think we will see any kind of change in the government policy. The government should focus on bringing stability at a macro level and building the supply chain. These are the two things that this government will do. India's growth rate will remain between 7 to 8 per cent and inflation will remain under control,” he said.

On FIIs (Foreign Institutional Investors) selling, Desai said there are two big players in the market. First - domestic investors and second - foreign investors. Currently, domestic investors are buying. In such a situation, foreign investors are not getting a chance. As soon as corporates start raising money, foreign investors can get entry into the market. Foreign investors' buying will return in the coming six months.

Equity mutual fund inflows reached a record Rs 34,697 crore in May, an 83.42 per cent jump from the previous month.