American financial behemoth Morgan Stanley's report has pegged India's growth for the year 2024 at 6.8 per cent. According to reports, Morgan Stanley deemed this growth to be broad-based. Here, broad-based growth implies a rise in productivity across different sectors.
Broad-based Growth
This broad-based growth includes growth on the supply and demand sides as well. In its report, Morgan Stanley attributed the growth to factors like global offshoring, energy transition, and digitalisation.
This projection is below the Reserve Bank of India's 7 per cent prediction. Although digitisation in the country is progressing at an impressive speed, energy transition, like a lot of other stakeholders, who were a part of COP summits and the Paris agreement (developed and developing nations alike) India's progress has been slow.
Another major investment banking firm, Goldman Sachs, also pegged India's growth rate at 6.7 per cent. | Pixabay
Despite the tall promises, the country still derives most of its energy from non-renewable resources, including, the worst source of all, Coal. Here, according to various reports, the energy demand met through coal stands at around 70 per cent.
Goldman Sachs Project Growth Rate of 6.7%
Coming to the Morgan Stanley projection, this comes after S&P Global updated its outlook for India to stable. In addition, it was just at the beginning of the week, that another major investment banking firm, Goldman Sachs, also pegged India's growth rate at 6.7 per cent, 10 basis point lower than Morgan Stanley.
Goldman Sachs had also attributed their projection to stability.
India's combined inflation rate for urban and rural for April stood at 4.83 per cent. |
The inflation rate and the central bank's interest rate or repo rate are also in focus, as observers expect the inflation rate, which has seen a steady decline, to drop further to stabilise, resulting in a change in interest rates or repo rates by the central bank, which has been retained at 6.50 per cent. India's combined inflation rate for urban and rural for April stood at 4.83 per cent.
These developments come just a few days before the results for the 18th Lok Sabha and the election for it, are declared (on June 4).
The RBI released its annual report on May 30. The data for the Indian economy for the Q4 is scheduled to be released on May 31st.
