Indian economy.
– Photo: amarujala
Expansion
Morgan Stanley has indicated that growth in India could be more broad-based, driven by both consumer and business spending. In its latest report ‘2024 Global Economic Midyear Outlook’, the global investment bank attributed India’s strong growth to three megatrends – global offshoring, digitalisation and energy transition.
Morgan Stanley has projected growth of 6.8 percent for India in 2024 (against RBI’s 7 percent) and 6.5 percent for the next fiscal year. According to the agency, inflation will remain within the comfort zone of policymakers. Retail inflation was recorded at 4.83 percent in April 2024, the lowest in the last 11 months.
Although retail inflation in India is at the RBI’s normal range of 2-6 per cent, it is above the ideal scenario of 4 per cent. Inflation has been a concern for many countries, including advanced economies, but India has largely managed to manage its inflation trajectory quite well. “India is benefiting from strong global growth. Higher export earnings will support domestic capital spending,” Morgan Stanley predicted.