New Delhi, March 2 (IANS). A Morgan Stanley report on Monday said the pace of economic growth in India is expected to remain strong and is likely to rise to a growth forecast of 6.5 per cent for fiscal year 2027, supported by both domestic and global demand.
In a statement, the global brokerage firm said it remains positive on India’s growth prospects for FY2027.
“Recent high-frequency indicators remain strong, indicating a recovery in domestic demand. We expect policies to remain supportive of growth in an environment of favorable macroeconomic stability,” the report said.
Improvement is also expected on the external demand front, especially in the field of commodity exports. Tariff rates have recently come down significantly from their high levels of 50 percent and India has successfully concluded several free trade agreements (FTAs).
According to the revised GDP series, both real GDP and real gross value added (GVA) in the third quarter of FY 2026 stood at 7.8 percent, which are slightly lower than the previous quarter.
The government has amended the base year for calculating GDP. The new base year has been kept as 2022-23, which was earlier 2011-12. This change has been made to better reflect the changing structure of the economy. The revised figures have been made available from the June 2022 quarter.
The new base year will help in estimating the real growth rate of the economy more accurately. This includes improved measurement of the unorganized and digital sectors, improved methods such as double deflation, supply and use table frames and improved data practices in line with international standards. Also new sources like GST collection, e-vehicle data and Public Finance Management System (PFMS) have also been added.
The growth rate for the entire fiscal year 2026 is estimated at 7.6 percent, which is slightly higher than the 7.4 percent estimated as per the old base year.
–IANS
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