Morgan Stanley revised its forecast for India’s FY25 growth reducing it to 6.7% from 7% due to weaker-than-expected high-frequency growth data for Q2, which is projected to expand at a slower rate of 6.3%.  

• Morgan Stanley also kept its growth forecast for FY26 and FY27 steady at 6.5%, with domestic demand expected to remain the key growth driver.
• The firm expects inflation to ease to 4.3% in FY26, down from 4.9% in FY25, driven by sound monetary policy and stable commodity prices.  
• It also anticipates that the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) will implement rate cuts in April, responding to moderating inflation.