According to Morgan Stanley, India’s GDP growth forecast remains positive. Morgan Stanley has raised India’s GDP growth forecast to 6.8% for the financial year 2024-25 due to continued growth in industrial and capital expenditure activity. Earlier this estimate was 6.5%.
The GDP growth rate in the fourth quarter of March 2024 will be around 7%. Thus, the GDP growth rate for the financial year 2023-24 will be 7.9%. The growth base will be broad and the gap between rural-urban consumption and private-public capital expenditure will reduce in the financial year 2024-25. Reduction in inflation and current account The economy is stabilizing due to reduction in the deficit. Food inflation, which plays a significant role in the CPI basket, has declined. This has happened due to supply-side improvements. Growth in domestic demand has been steady and this is a good outlook for the economy. Consumption accounts for 60.3% of GDP and is the mainstay of domestic demand. Slow global growth, high commodity prices and tight global fiscal policies pose risks to India’s growth and macroeconomic stability. Investment rate in India FY 2022- It was 32.2% of GDP in 2023. By the financial year 2026-27 the investment rate will increase to 36.2% of GDP.
Morgan Stanley
- Morgan Stanley is a US-based investment bank.
- J.P. Morgan & Company was its predecessor organization.
- It was founded by John Pierpont Morgan in the year 1871.
- After the Great Depression of 1929, the Glass-Steagall Act was passed in 1933.
- After this Act, the company separated the investment banking division in the year 1935 and formed Morgan Stanley.
- Henry S. Morgan and Harold Stanley were its initial partners.
- Morgan Stanley went public in the year 1986.
- In 2003, Morgan Stanley set up a new global in-house center in Mumbai to support the securities, wealth management and investment management businesses.