Morgan Stanley has lowered India's gross domestic product (GDP) growth forecast for the current financial year to 7.6 percent citing high inflation and global slowdown.
The new growth projection is 0.30 percent lower from the earlier forecast. The brokerage firm has also lowered India's GDP growth forecast for the financial year 2023-24 to 6.7 percent, which is 0.30 percent lower from its earlier projection.
In a research note, Morgan Stanley's chief economist for India Upasana Chachra said, "the key channels of impact will likely be higher inflation, weaker consumer demand, tighter financial conditions, the adverse impact on business sentiment, and a delay in capex recovery."
(With ANI inputs)