India is expected to outperform Asian economies in private capital expenditure driven by recent policy reforms, according to Chetan Ahya from Morgan Stanley.
Ahya praised India's monetary policy direction and mentioned the potential for more rate cuts by the Reserve Bank of India in the current cycle.
Morgan Stanley recommends monitoring the impact of trade tensions on corporate capital expenditure in Asia, with potential challenges for growth due to the slowdown in private capital expenditure.
While Asian economies may struggle with the effects of trade tensions, there is room for fiscal and monetary policy stimulus to counter these challenges.