India: Economy to expand 12.1% in FY 2021/22 – Morgan Stanley

Economists at Morgan Stanley upgraded their growth forecasts for India amid a potential economic turnaround in the next fiscal year.

Key quotes

“Forecast for India’s economic growth raised to 12.1% for the next financial year due to supportive policy mix and an expected recovery in domestic and external demand.”

“India's 2022-2023 growth forecast lifted by 50 basis points to 6.7%.”

"We believe the recovery has more legs and India is on the cusp of a virtuous growth cycle."

“We believe that the economy will show a synchronous recovery with a pickup in domestic demand and external demand in the following 12 months.”

“A synchronous recovery in domestic and external demand would help improve capacity utilisation, which would set the stage for an eventual pickup in private capex.”

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