Key Reasons For India’s Strong Economic Growth

Morgan Stanley has published its 2024 India Economic Outlook. The brokerage house expects robust domestic demand to keep the growth rate resilient, supported by strong domestic fundamentals that reduce the economy's vulnerability to external headwinds. Macro stability is likely to remain within the comfort range. The general elections in May 2024 are identified as a key risk. India’s impressive Q2 GDP growth of 7.6 percent has prompted several analysts and international brokerage houses to revise their yearly forecasts upwards. Morgan Stanley has raised the financial year 2024 growth forecast to 6.9 percent from 6.4 percent earlier. For the financial year 2025, the international brokerage has, however, maintained its estimates at 6.5%. Watch the exclusive chat with Morgan Stanley's Chief India Economist Upasana Chachra.