India may get hit if US-China talks fail, says Morgan Stanley's Chetan Ahya

Indian economy was closely linked to the global one, and if US-China trade relations deteriorated, it would be difficult for the RBI to sort out domestic issues with liquidity, he said

India needs to address the issue of non-banking financial companies (NBFCs) on a priority before it hits the stability of the system, Chetan Ahya, chief economist and global head of economics, Morgan Stanley, told Anup Roy. He said the Indian economy was closely linked to the global one, and if US-China trade relations deteriorated, it would be difficult for the Reserve Bank of India (RBI) to sort out domestic issues with liquidity. Edited excerpts:


What are US-China trade tensions evolving into?

In our base case scenario, we are assuming there will be some kind of an agreement between