In its latest research report, economists at Morgan Stanley have slashed India's gross domestic product (GDP) growth forecasts to 7.6% for FY2023 and to 6.7% for FY2024.

Key quotes

"Our global economics team expects global growth to average 2.9% YoY in 2022 slowing from 6.2% growth in CY21. Against this backdrop, we lower our forecasts of India's GDP growth to 7.6% for F2023(from 7.9%) and 6.7% for F2024 (from 7%)."

“Slower global growth, adverse terms of trade shock, and impact on business confidence from geopolitical tensions weigh on the near-term outlook.”

"The government's policy reforms, plus expansion of public infrastructure spending alongside an increase in capacity utilization levels, should help private capex to recover in 6-9 months."