Morgan Stanley has cut India’s Gross Domestic Product (GDP) growth projections for the financial year 2022-23. Earlier this brokerage firm had estimated that the growth rate would be 7.2% in FY23, which has now been reduced to 7.2 percent.
Brokerage firm Morgan Stanley has reduced India’s annual GDP growth forecast to 7.2 per cent for the financial year 2022-23. According to this brokerage firm, the world’s major economies have been affected due to tough economic conditions and slowdown in global trade. According to a report by news agency Reuters, the brokerage company has cut its first estimate of India’s GDP growth to 7.6 per cent at a time when it stood at 4.2 per cent in the April-June 2022 quarter. The revised estimates are in line with the estimates of the Reserve Bank of India (RBI). Morgan Stanley estimates annual GDP growth at 6.4 percent for the next year.
Central banks around the world have adopted strict monetary policy to control rising inflation, due to which the possibilities of a possible economic slowdown have increased. RBI (Reserve Bank of India) also increased the repo rate by 50 basis points last month.
India’s annual consumer price index-based inflation rate remained at a multi-year high during the past few months, with a slight moderation in June to 7.01 per cent. Morgan Stanley has predicted that the inflation rate in India will moderate further in the coming times.
In a report by Reuters, Morgan Stanley’s Chief India Economist Upasana Chachda has been quoted as saying that due to the softening prices of commodities and falling prices of domestic food items, we expect the inflation rate to decrease in India in the near future.