Morgan Stanley raises India's growth outlook for FY26, FY27 on rising capex, domestic demand
Wednesday, 21 May 2025 Morgan Stanley has revised India's economic growth forecast upwards to 6.2% for FY26 and 6.5% for FY27, citing easing US-China trade tensions and strong domestic demand. The firm anticipates continued policy support, with easier monetary policy and prioritized capital expenditure, fueling growth. Consumption recovery is expected to broaden, alongside robust public and household capital expenditure.
India's central bank cuts interest rates more than expected, citing muted inflation and a need to kickstart economic growth as the impact of US tariffs weighs on the country's outlook. The Reserve Bank..