A recent report by Morgan Stanley predicts robust growth for India, expecting a 6.5% growth rate for FY27. The report cites favorable conditions in both domestic and external demand as key drivers for this growth momentum. The global brokerage remains optimistic about India’s growth prospects for the fiscal year.
The report highlights that high-frequency indicators point towards a strengthening domestic demand, indicating a positive growth trajectory. It also anticipates continued policy support for growth in a stable macroeconomic environment. Additionally, the outlook for external demand, particularly for goods exports, is expected to improve with the reduction in tariffs and successful completion of free trade agreements by India.
The rebased GDP series reveals a moderation in real GDP and real GVA growth to 7.8% in Q3 FY26 from previous levels. The government’s revision of the base year for GDP calculation to 2022-23 aims to provide a more accurate representation of the economy’s evolving structure. This update incorporates new methodologies and data sources to enhance the estimation of economic growth momentum.
Estimating growth at 7.6% for the full financial year FY26, the report indicates a slight increase from the earlier projection under the old series. These developments suggest a positive growth trajectory for India, supported by various economic factors.
