Global financial powerhouse Morgan Stanley is bullish on India, projecting GDP growth to surpass 6.5% in fiscal 2027 amid robust demand from home and abroad. Detailed in Monday’s report, this view hinges on persistent economic vigor.
Key high-frequency pointers confirm a domestic demand uptick, with consumption leading the charge. ‘We foresee growth-friendly policies enduring in a stable macro setup,’ the document asserts, signaling continuity in reform efforts.
External demand is also on an upswing, particularly in commodities, aided by moderated duties from 50% highs and freshly inked FTAs that promise expanded market access.
Backing these projections are updated GDP stats: FY26 Q3 clocked 7.8% growth for real GDP and GVA, a tad softer than the previous period. The new 2022-23 base year replaces 2011-12, aligning measurements with today’s economy—think digital boom, informal sector nuances, and service dominance.
The overhaul features cutting-edge tools like double deflation, supply-use balances, and enriched datasets from GST, e-mobility, and PFMS. Full FY26 growth now stands at a revised 7.6%, improved from 7.4%.
Morgan Stanley’s insights affirm India’s resilience and forward momentum, potentially rewriting growth narratives for FY27 and beyond.