Morgan Stanley Boosts India's FY25 GDP Growth Forecast to 6.8%

By siliconindia  |  Wednesday, 27 March 2024, 11:58:29 AM IST

Morgan Stanley Boosts India's FY25 GDP Growth Forecast to 6.8%
Morgan Stanley, a leading global brokerage firm, has revised India's GDP growth projections for the fiscal year 2024-25 (FY25), citing ongoing momentum in industrial and capital expenditure activities. The firm now forecasts a GDP growth rate of 6.8%, up from the previous estimate of 6.5%.
For the current fiscal year (FY24), Morgan Stanley maintains an optimistic outlook, projecting a GDP growth rate of 7.9%. In its report, the firm anticipates GDP growth to hover around 7% in the fourth quarter of FY24, with Gross Value Added (GVA) growth at 6.3%.
The report underscores the expectation of a broad-based growth trajectory in FY25, with narrower differentials between rural-urban consumption patterns and private-public capital expenditure. Morgan Stanley predicts that this economic expansion cycle will endure, driven by improvements in productivity growth, ensuring a benign macroeconomic environment. 
Additionally, the report forecasts Consumer Price Index (CPI) inflation to remain at 4.5% in FY25 and FY26, highlighting stability in price levels. Furthermore, it anticipates the current account deficit to stand at 1% of GDP in both FY25 and FY26.
Morgan Stanley's upward revision of India's GDP growth forecasts reflects confidence in the country's economic resilience and the potential for sustained growth momentum. This positive outlook is bolstered by continued industrial and capital expenditure traction, indicating favorable conditions for economic expansion in the coming years.

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