India’s gross domestic product (GDP) growth is expected at 6.5 percent in the current fiscal year 2023-24 and next fiscal year 2024-25, according to the India Economic Outlook report released by Morgan Stanley Research on Tuesday, November 14.
The research arm of investment bank Morgan Stanley said in the report that the domestic demand supported by strength in corporate and financial sector balance sheets and the follow-through of policy reform measures will aid India's growth amid a global slowdown.
The latest forecast from Morgan Stanley comes amid an escalation of conflict in Israel that threatens to impact oil prices. High oil prices not only increase inflation but also result in higher import bills, leading to a higher fiscal deficit and balance of trade challenges, which impact the economy.
Morgan Stanley expects headline inflation to moderate to 4.9 percent in fiscal year 2024-25 and 5.4 percent in fiscal year 2023-24.
The Reserve Bank of India has also forecast GDP growth at 6.5 percent for the fiscal year 2023-24.
