Source : Republic
Morgan Stanley Ups India’s GDP Forecast For 2024 On Strong Q1 Data
Morgan Stanley’s GDP forecast: Morgan Stanley, the multinational investment bank, has raised its economic growth forecast for India in fiscal year 2024 following the release of surprising data for the April-June quarter, which indicated the country’s fastest growth rate in a year.
The investment bank has increased its projection for India’s growth to 6.4 per cent, up from the previous estimate of 6.2 per cent. This revision is attributed to the robust domestic demand observed in the country.
During the June quarter, India’s GDP growth reached 7.8 per cent, surpassing Morgan Stanley’s earlier expectation of 7.4 per cent. Morgan Stanley noted that this outperformance was primarily driven by stronger-than-anticipated growth in private consumption.
In a report, Morgan Stanley stated, “The robust momentum in domestic demand conditions continues to reflect in the GDP numbers, which have surprised on the upside for two consecutive quarters.” The bank pointed to strong GST (Goods and Services Tax) collections, credit growth, and the Purchasing Managers’ Index as indicators of this strong demand.
Resilience in economic growth to persist
Morgan Stanley anticipates that this resilience in economic growth will persist. It attributes this positive outlook to improved balance sheets across the economy and proactive supply-side responses from the government, which are expected to establish a solid foundation for sustained multi-year growth.
However, the bank did offer a note of caution, highlighting potential risks stemming from weak global economic conditions, fluctuations in global commodity prices, and unforeseen weather-related events that could impact India’s growth trajectory.
Overall, Morgan Stanley’s upward revision in India’s growth forecast underscores the country’s strong economic recovery and resilience, driven by robust domestic demand and proactive policy measures.
(With ANI inputs)
