Morgan Stanley cuts India's FY23 GDP forecast to 7.2%

It sees downside risks emanating from a weaker than expected global growth trend, supply-side-driven commodity price shock and faster than warranted tightening of financial conditions

After Nomura slashed India's 2023 GDP growth forecast to 4.7 per cent from its earlier projection of 5.4 per cent amid recession fears and rising interest rates, analysts at Morgan Stanley, too, have lowered their GDP growth estimates. They now expect the Indian economy - as measured by GDP - to grow at 7.2 per cent in fiscal 2022-23 (FY23), 40 basis points (bps) lower than their earlier estimates. For FY24, the revised projection stands at 6.4 per cent - down 30 bps.

"We see downside risks emanating from a weaker than expected global growth trend, supply-side-driven commodity price shock