Morgan Stanley raises India's growth outlook for FY26, FY27 on rising capex, domestic demand

Morgan Stanley has revised India's economic growth forecast upwards to 6.2% for FY26 and 6.5% for FY27, citing easing US-China trade tensions and strong domestic demand. The firm anticipates continued policy support, with easier monetary policy and prioritized capital expenditure, fueling growth. Consumption recovery is expected to broaden, alongside robust public and household capital expenditure.