Current Affairs - Economy - Discussion

Morgan Stanley has adjusted its forecast for India’s GDP growth for FY25 to 6.3%, down from an earlier projection of 6.7%. This revision follows a slowdown in Q2 FY25, where growth fell to 5.4%, the lowest since March 2023, due to weak private consumption and industrial performance. Despite these challenges, the services sector showed resilience, growing by 7.1%. The recovery in the second half of FY25 is expected to be supported by government spending, rural demand improvement, and easing financial conditions. This aligns with Morgan Stanley’s expectation of an average 6.6% growth during the latter half of FY25.