Morgan Stanley lifts India's fiscal 2027 GDP forecast to 6.7%
Business
Morgan Stanley just boosted its forecast for India's GDP growth in fiscal 2027, raising it from 6.2% to 6.7%.
The bank says this optimism comes from strong spending at home, big investments in infrastructure, and a surge in services exports, all helping India push through tough global challenges like high oil prices and ongoing tensions in Iran.
Sees 7% 2028 growth, flags inflation
Looking ahead, Morgan Stanley expects India's economy to grow even faster: 7% in fiscal 2028.
But there are some hurdles: oil prices might stay high, production costs could rise, and the rupee may lose value.
These trends could mean higher inflation and a bigger current account deficit (up to 1.8% of GDP), which adds pressure on currency markets and corporate profits.