Strong Domestic Demand Supporting India's Growth: Morgan Stanley

Against that backdrop, Morgan Stanley expects India's GDP growth to be at 6.8% in the current financial year 2024-25 and 6.5% in 2025-26.

Morgan Stanley is firm on India's growth outlook, given the support it is getting from domestic demand. Citing high-frequency data, the global investment banking firm said it remains constructive on the growth outlook.

Against that backdrop, it expects India's GDP growth to be at 6.8% in the current financial year 2024-25 and 6.5% in 2025-26.

On the macro side, it anticipates headline inflation to remain supported by favourable base effects. It projected inflation to be around 5% in the second quarter, before moderating to 4.1% year-on-year in the second half of 2024.