Question
Recently “Morgan Stanley” has forecast
India’s growth to______ from previously estimated 7.9% for FY2023?Solution
Morgan Stanley downgraded India’s growth forecast to 7.6% from 7.9% for FY2023 amid a slowdown in global growth, higher commodity prices and risk aversion in global capital markets. For FY24, it lowered its growth forecast to 6.7% from the 7% estimated earlier. On the global front, it projected growth at 2.9% in the calendar year 2022 as compared to 6.2% growth in 2021. Within Asia, India would be the economy which will be most exposed to upside risks to inflation. CPI (Consumer Price Index) inflation is expected to be 6.5% for FY23. The current account deficit widened to a 10-year high of 3.3% of GDP (Gross Domestic Product) in FY23.
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