Morgan Stanley cuts India's GDP growth forecast for FY2023 and FY2024

In its latest research report, economists at Morgan Stanley have slashed India's gross domestic product (GDP) growth forecasts to 7.6% for FY2023 and to 6.7% for FY2024.

Key quotes

"Our global economics team expects global growth to average 2.9% YoY in 2022 slowing from 6.2% growth in CY21. Against this backdrop, we lower our forecasts of India's GDP growth to 7.6% for F2023(from 7.9%) and 6.7% for F2024 (from 7%)."

“Slower global growth, adverse terms of trade shock, and impact on business confidence from geopolitical tensions weigh on the near-term outlook.”

"The government's policy reforms, plus expansion of public infrastructure spending alongside an increase in capacity utilization levels, should help private capex to recover in 6-9 months."