New Delhi: Global financial services major Morgan Stanley upgraded its GDP growth forecast for India. The agency lifted India’s GDP growth forecast at 6.2 per cent in FY26 and 6.5 per cent for FY27. The earlier growth forecast was 6.1 per cent for FY26 and 6.3 per cent for FY27.
‘Policy support is likely to continue through easier monetary policy while fiscal policy prioritises capex. Macro stability expected to be in comfort zone with robust buffers. Within investments, we see public and household capex driving growth while we expect private corporate capex to recover gradually,’ it added.
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Morgan Stanley expects headline inflation to remain benign thanks to lower food inflation and the range-bound trend in core inflation. The IMD’s forecast of an above-normal monsoon for 2025 is likely to support the cropping season, which, in addition to helping to build healthy buffer stocks, is likely to ensure that food prices remain benign, according to the note.
Morgan Stanley expects to remain decisively below the 4 per cent mark over the next few months and average 4 per cent (on-year) in F2026 and 4.1 per cent in F2027.
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