Morgan Stanley cuts India’s GDP to 7.2% in FY23

CHENNAI: With the global economic growth slowing, Morgan Stanley in its research report has revised India’s gross domestic product (GDP) growth estimates to 7.2 per cent in FY23 from 7.6 per cent and 6.4 per cent for FY24 from 6.7 per cent. The consumer price index (CPI) to average 6.5 per cent, whereas the earlier estimate was 7 per cent. Morgan Stanley said it sees three aspects - slower trade growth, tighter financial conditions and changes in commodity prices. While there are signs of moderation in exports, it said the domestic demand will provide a partial offset with the support from government’s supply side response and the reopening vibrancy to help the informal sector. The moderation in commodity prices and swifter correction in domestic food prices will improve the near term inflation. “We now expect CPI inflation to average 6.5 per cent in F23 (vs 7 per cent earlier),” Morgan Stanley said.