Mumbai - Global Brokerage firm Morgan Stanley has raised India's GDP growth estimates for FY25 to 6.8 per cent from 6.5 per cent earlier on the back on continued traction in industrial and capex activity.

The forecast for FY24 GDP stood at 7.9 per cent. "We expect GDP growth to track at around 7 per cent in QE Mar-24 with GVA growth of 6.3 per cent and thus F2024e GDP growth of 7.9 per cent," the company said in its report. Furthermore, it said that the growth us expected to be broad-based and the gaps between rural-urban consumption and private-public capex will be narrow in the next fiscal i.e. FY25.
"The cycle will have more years of steady expansion driven by improvement in productivity growth, which will ensure macro stability remains benign. Indeed, we expect CPI inflation to track at 4.5 per cent in F2025e and F2026e and current account deficit at 1 per cent of GDP in F2025e and F2026e," it further stated.