Which of the following statements about India's GDP growth projections by Morgan Stanley is/are correct?

1. Morgan Stanley Research expects India’s GDP growth for FY25 to moderate to 6.5 per cent.

2. ICRA has projected the year-on-year GDP growth to increase sequentially to 6 percent in Q3 FY24.

3. MS Research’s report maintains a pessimistic outlook on the Indian economy.

Solution

•     Morgan Stanley Research expects India’s GDP growth for FY25 to moderate to 6.5 per cent from 6.9 per cent projected for FY24. •     ICRA, meanwhile, has projected the year-on-year (Y-o-Y) GDP growth to moderate sequentially to 6 per cent in Q3 FY24 from 7.6 per cent, led by agriculture and industry sectors. •     MS Research’s report maintained a constructive outlook on the Indian economy, while highlighting that risks emanate from global factors and elections in May 2024. •     For the quarter ending December 2023, ICRA has projected the lowest growth print for agriculture, forestry, and fishing sector since the fourth quarter of 2019, at 0.5 per cent, down from 1.2 per cent in the previous quarter. •     The growth in gross value added (GVA) in the services sector, on the other hand, according to ICRA projections, is expected to rise to 6.5 per cent in Q3 FY24 from 5.8 per cent in Q2. •     It will be led by trade, hotels, transport, communication and services related to broadcasting.