India's economic recovery is expected to have gathered momentum and India's gross domestic product  (GDP) growth for the December quarter is expected to grow at 7 %, says a Morgan Stanley report.
 
GDP grew by 6.3% in July-September quarter of the fiscal, up from 5.7% in the first quarter, while growth in the industry and services sector is expected to have accelerated and growth in the agriculture sector decelerated.
 
In GVA terms, growth picked up further to 6.7% year-on-year from 6.1% in the previous quarter, the report said.
 
"We expect the economic recovery to have gathered further momentum with GDP growth accelerating to 7.0% year-on-year in the December-17 quarter from 6.3% in the September quarter," it said.
 
Corporate revenue trends too 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.
 
A Reuters poll predicted that India`s economy grew at its fastest pace in a year in the October-December quarter as consumers, businesses and the government stepped up spending.
 
This suggests 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, the report said.