Morgan Stanley cuts India’s FY27 growth outlook to 6.2% amid Gulf conflict

Morgan Stanley has reduced India's growth forecast for FY27 to 6.2 percent. This adjustment stems from supply disruptions and rising costs linked to the Gulf conflict. Inflation is now expected to reach 5.1 percent, and the current account deficit may widen to 2.5 percent of GDP. Sectors like pharmaceuticals and textiles face margin pressures.