New Delhi, September 3: Morgan Stanley has raised its economic growth prediction for India for the fiscal year 2024 higher after statistics from the April-June quarter indicated the country’s economy expanded at its fastest rate in a year.
The international investment bank revised up its prediction for India’s growth from 6.2 percent to 6.4 percent. It cited strong domestic demand as the reason for the growth projection modification.
India’s GDP growth for the June quarter was 7.8%, above Morgan Stanley’s prediction of 7.4%.
This was above forecasts (7.4%) but in line with consensus (7.8%); the upward surprise was driven by faster-than-expected increase in private consumption, according to a research from Morgan Stanley.
“The robust momentum in domestic demand conditions continues to reflect in the GDP numbers, which have surprised on the upside for two consecutive quarters,” it said, noting strong GST revenues, loan growth, and the Purchasing Managing Index.
It anticipates that the resiliency will last. A robust multiyear economic cycle is expected to have a solid foundation thanks to stronger balance sheets across the board and the government’s proactive supply-side measures.
However, it issued a warning that dangers include “idiosyncratic” weather patterns, poor global economic circumstances, and changes in commodity prices.
