GDP seen to grow 6.2 pc in FY26: Morgan Stanley

India’s GDP growth is expected at 6.2% in FY26 (vs 6.1%) and 6.5% YoY (vs 6.3%) for FY27 given the de-escalation of US-China trade tensions, which improves the outlook for external demand at the margin, according to Morgan Stanley. India’s growth is anticipated to remain resilient, primarily supported by strength in domestic demand. This strength is expected to counter uncertainties emanating from the external environment, with broadbased consumption recovery and investment, particularly public and household capital expenditure, driving momentum. Policy support will likely continue through easier monetary policy while fiscal policy prioritises capex. With inflation projected to remain benign, macro stability is anticipated to stay within a comfort zone, underpinned by robust buffers. Indian economy can leverage internal engines and proactive policy to sustain its growth trajectory, as per a report.

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