Morgan Stanley raises India's GDP growth forecast for FY25 to 6.8%.

Global brokerage firm Morgan Stanley has revised its GDP growth forecasts for India, foreseeing an upward trajectory for FY25 and the ongoing FY24. The firm now expects GDP growth to reach 6.8% in FY25, up from the previous estimate of 6.5%, while projecting a growth rate of 7.9% for FY24.

Morgan Stanley anticipates India's GDP to sustain robust growth, with a forecasted growth rate of around seven percent in the fourth quarter of FY24. This growth momentum is expected to be broad-based, with diminishing gaps between rural-urban consumption patterns and private-public capital expenditure. The firm also foresees a favourable inflation outlook, driven by easing food inflation and subdued core inflation due to improvements in the supply chain. However, it warns of potential risks from global factors and domestic uncertainties, including slower-than-expected global growth and changes in the policy landscape, necessitating proactive Monitoring.

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