** India retained the fastest growing major economy tag after it grew 7.7 percent year-on-year in March quarter, the quickest pace in nearly two years driven by higher growth in manufacturing, the farm sector and construction
** Morgan Stanley (MS) says growth recovery on track, while HSBC expects growth to inch up next year but partly due to a low base
** Citi says construction growth possibly reflects the momentum in housing and infrastructure schemes of the government, and if these trends continue, then the employment outlook could also improve.
** Adds relatively higher interest rates, high oil prices, uncertainties on the exchange rate, gradually building political risks from the 2019 elections are all headwinds that can slow the growth momentum
** UBS says private corporate capex will take another 18 months to pick up meaningfully as it is still grappling with low capacity utilisation levels and legacy issues of high debt and weakened balance sheets
** Macquarie, however, remains cautious as pace of recovery may be impacted by tighter financial conditions and higher oil prices