India's long-term growth story robust despite global headwinds: Report

India's long-term growth story remains robust despite global headwinds as well as rupee depreciation and high oil prices, says a report.

According to Dun & Bradstreet's Economy Forecast, the balance sheet of banks, corporate and government remains strained while the gross non-performing assets (NPAs) have increased significantly.

"Strain on India's external balance sheet has increased due to slide in forex reserve, outflows in foreign investment, increased current account deficit (CAD), rupee depreciation and high global crude oil prices," Dun & Bradstreet India Lead Economist Arun Singh said.

Sectors laden with high stressed assets are engineering, infrastructure, construction whose debt serviceability and profitability have been impacted.

The report further said capital flows have been negative for the second consecutive quarter in July-September and foreign investors have also pulled out strongly from the Indian markets.

Moreover, mounting debt pressures, rupee depreciation and persistent rise in global crude oil prices are likely to keep the merchandise trade deficit high.

"This has increased the stress on India's external sector. These issues are not going to be resolved soon till concerns on geopolitical issues and trade wars remain heightened," the report noted.

The report however noted that despite the global headwinds, India's long-term growth story remains robust.

"To continue the growth trajectory, it is the time that investment accelerates as it will directly provide jobs for the millions of population entering the workforce and indirectly accelerate the consumption demand which will keep the growth momentum rolling," Singh said.