Current Affairs - Economy - Discussion

Morgan Stanley has upgraded India’s GDP growth forecast for FY26 to 6.7%, revising it upward from the earlier estimate of 6.2%. The decision is driven by India’s strong 7.8% GDP growth in Q1, reflecting robust private and government consumption, healthy investment momentum, and supportive agricultural output due to a good monsoon. Additionally, impending GST cuts and the festive season are expected to further boost domestic demand. While external headwinds such as weaker exports and higher US tariffs pose challenges, these are likely to be offset by resilient rural consumption and front-loaded government expenditure, strengthening India’s growth trajectory.