Morgan Stanley flags UPA 8216;paralysis8217;

Ahya pointed out that India8217;s two-pronged strategy needed strengthening of institutional capacity to manage transparent awarding of major infrastructure projects under public-private route.

India should also build a comprehensive plan for energy security along with a systematic programme for energy pricing reforms,Ahya said while stressing on the need for initiating aggressive fiscal consolidation.

He said the country should allow foreign direct investment in multi-brand retail distribution,insurance and other areas to build a sustainable source of capital inflows.

Ahya called on India not to delay any further the 25-30 planned infrastructure projects as quick executions of these investment-oriented developments would bring in the much needed foreign investments and capitals.

He noted India8217;s good initiatives including the awarding of national highway contracts and reducing the environmental approval delays for coal mining.

However,Ahya cautioned that clear signs of Indian economic slowdown have emerged in the last three to four months,even though the economy had till March this year maintained relatively strong growth.

Morgan Stanley sees India8217;s gross domestic product GDP growth at 7.3 per cent this fiscal and 7.4 per cent in the following year,but warns that the eurozone crisis can impact the country8217;s exports.