Morgan Stanley forecasts strong Indian GDP growth amid robust domestic demand

Morgan Stanley is optimistic about India's economic growth due to strong domestic demand. The firm forecasts GDP growth of 6.8% in 2024-25 and 6.5% in 2025-26. It predicts inflation to be around 5% in the second quarter, easing to 4.1% in the second half of 2024. The current account deficit is expected to remain within 1-1.5% of GDP in 2025-26. The Reserve Bank of India is likely to maintain the policy rate at 6.5% given global factors and domestic improvements. Despite inflation concerns, India's growth prospects remain robust.