Robust domestic demand driving India's growth, says Morgan Stanley

Morgan Stanley maintains a positive view on India's growth outlook, predicting GDP growth of 6.8% in 2024-25 and 6.5% in 2025-26. The firm anticipates inflation to hover around 5% in the second quarter and expects retail inflation to average 4.5% in the upcoming fiscal year. Current account deficit is forecasted to remain favorable at 1-1.5% of GDP in 2025-26.