Morgan Stanley forecasts India's growth rate to be 6.8% in 2024, says this on inflation

Morgan Stanley has indicated that the growth rate in India may remain more based on both consumer and business spending. The global investment bank, in its latest report '2024 Global Economic Midyear Outlook', attributed India's strong growth to three megatrends - global offshoring, digitalization, and energy transition.

While the RBI has forecast growth of 7% for India in 2024, Morgan Stanley has predicted 6.8% growth for the country in that same year. Policymakers will continue to feel comfortable with levels of inflation, according to the agency. The lowest rate of retail inflation in the previous 11 months was 4.83 percent in April 2024.

While retail inflation in India is at the RBI's normal level of 2-6 percent, it is above the ideal scenario of 4 percent. Inflation has been a concern for many countries, including advanced economies, but India has largely managed to manage its inflation trajectory quite well. "India is benefiting from strong global growth. Higher export earnings and domestic capital spending will be supported by this," Morgan Stanley predicted.