Current Affairs - Economy - Discussion

Morgan Stanley has updated its GDP growth projection for India for the fiscal year 2026 to 6.2%, an adjustment from its earlier forecast of 6.3%. This revision reflects optimism fueled by robust domestic demand, supportive policy measures, and a more favourable global trade environment due to easing tensions between the US and China. These factors are expected to improve external demand for Indian exports. Additionally, the Reserve Bank of India is anticipated to maintain a growth-supportive stance by implementing further monetary easing, with two projected rate cuts of 25 basis points each. These combined elements underpin the improved outlook.