As of March 2024, what does Morgan Stanley's research forecast for India's GDP growth rate in FY25?

Correct option is A

As of March 2024, Morgan Stanley revised its forecast for India's GDP growth rate in the fiscal year 2024-2025 (FY25) to 6.8%, up from the previous estimate of 6.5%.

Key Factors Influencing the Revision:

• Industrial and Capital Expenditure Activity: Continued traction in these sectors has been a significant driver for the upward revision.
• Broad-Based Growth: Morgan Stanley anticipates that the growth will be widespread, with narrowing gaps between rural and urban consumption, as well as between private and public capital expenditure in FY25.
• Favorable Inflation Trajectory: Recent trends indicate a moderation in headline inflation, with expectations for it to average 4.5% in FY25, down from 5.4% in FY24.