Morgan Stanley cuts India's FY23 growth forecast to 7.6%

The Reserve Bank of India (RBI) has revised downwards its growth projection for FY23 to 7.2 per cent from 7.8 per cent earlier

Morgan Stanley on Wednesday pared India’s growth forecast for FY23 to 7.6 per cent from 7.9 per cent, estimated earlier. It said that a slowdown in global growth, higher commodity prices and risk aversion in global capital markets expose Asia’s third-largest economy to downside risks.

“The key will likely be from an adverse impact on business sentiment as a slowdown in demand, higher inflation, and the cost of funding impair balance sheet strength and delay the capex recovery. On the domestic side, a change in policy stance by the government or central bank could expose the economy to macro stability risks,