Current Affairs - Economy - Discussion

Morgan Stanley has downgraded India’s FY25 growth forecast from 7% to 6.7%, citing weaker-than-expected performance in Q2. However, a recovery is anticipated in the second half of FY25, supported by improved agricultural output and increased government spending. Additional factors such as easing inflation and potential monetary policy adjustments by the Reserve Bank of India in April 2025 are expected to contribute to economic stabilization. Despite the short-term challenges, the firm remains optimistic about growth prospects in the latter part of FY25.