Analysts slash India's GDP forecast amid high inflation, recession fears

On Thursday, ADB lowered India's growth forecast from 7.5 per cent to 7.2 per cent for FY23. Earlier on July 18, US-based Morgan Stanley also slashed India's GDP growth forecast to 7.2 per cent

High inflation, subsequent monetary tightening and looming global recession have led to various analysts cutting India's GDP forecast for 2022-23(FY23). On Thursday, the Asian Development Bank (ADB) lowered India's growth forecast from earlier 7.5 per cent to 7.2 per cent for FY23. 

On July 18, US-based Morgan Stanley also slashed India's GDP growth forecast for FY23 from 7.6 per cent to 7.2 per cent. For FY24, the growth estimates have been set at 6.4 per cent.

Days before Morgan Stanley, Nomura, another financial service company, lowered the GDP growth forecast from 5.4 per cent to 4.7 per cent for the