Morgan Stanley cuts India growth forecasts on inflation, global slowdown

Mumbai, 11/5: Morgan Stanley has lowered its forecasts for India’s economic growth in the next two fiscal years, saying a global slowdown, surging oil prices and weak domestic demand would take a toll on Asia’s third-largest economy.

 

 

Gross domestic product growth will be 7.6 per cent for fiscal 2023 and 6.7 per cent for fiscal 2024, 30 basis points lower than the previous estimates, the brokerage said in a note dated Tuesday.

 

The cut reflects a pronounced economic impact from the Russia-Ukraine conflict that has driven up crude prices, pushing retail inflation in India – the world’s third-biggest oil importer – to its highest in 17 months.

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