Markets should see greater inflows, India story attractive: Kalpana Morparia, JPMorgan

NEW DELHI: Praising the government for showing a 'strong resolve' by announcing economic reforms, Kalpana Morparia, CEO of JPMorgan India told ET Now that with near-term concerns getting addressed, the markets should see greater investment flow.

"India has always been a very attractive medium to long-term growth story," she said. The investment bank has been 'pretty positive' on India, she said.

Morparia went on to say that JP Morgan had upgraded India earlier this year and more portfolio inflows are expected. The ultimate test however, is the inflow of foreign direct investment, she said.

With inflationary pressures being more supply-side in nature than owing to interest rates, Morparia said that markets expect RBI to continue cutting the CRR. "CRR in India is very high," she added.

The Reserve Bank of India cut CRR by 25 bps in its monetary policy review in September. The move was acknowledged as a positive step by the government. The government has announced many economic measures in the last few weeks, with a view to boost the dwindling global investor confidence in India.

FDI in multi-brand retail, a long pending measure which was finally announced is being looked at to generate millions of jobs and investment in the country. The economic growth rate has been dipping continuously over the past few quarters, raising fears of a credit ratings downgrade from international agencies. Measures such as diesel price hike have been implemented to check a ballooning fiscal deficit and get the economy back on the high growth trajectory.