Morgan Stanley lowers forecast for India’s FY25 growth to 6.7% over weaker-than-expected Q2 data

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.