Morgan Stanley projects India's FY23 GDP growth at 7%

India’s real GDP is expected to grow by seven per cent in 2022-23 and by 6.4 per cent in 2023-24, as per Morgan Stanley. It expects inflation to remain in the range of 7.1 per cent to 7.4 per cent in September 2022, driven by increase in food prices as per high-frequency food price trend. The research house further stated that the Monetary Policy Committee (MPC) is likely to increase the repo rate by 50 basis points (bps) to 5.9 per cent, with an unchanged stance. Earlier, it had estimated a 35 bps hike in the policy rate in the upcoming policy. However, sticky inflation and hawkish stance of other central banks warranted a change in expectation.