India’s FY23 Growth Forecasts Cuts to 7.6%

Current Context: As per the Morgan Stanley Report the growth forecast of India for FY23 has been revised to 7.6% from 7.9% which is estimated earlier.

• The factors that effects the growth forecast of India were a slowdown in global growth, higher commodity prices, and risk aversion.
• According to a Morgan Stanley report, in Asia India is the only country that is exposed to the upside risk of inflation.
• Apart from that, it has also projected the global growth at 2.9 % for the year 2022 which is below the half 6.2% of the previous year i.e 2021.
• In fact, they also lowered the growth forecast from 7% (which was estimated earlier) to 6.7% for FY24.
• CPI is also expected to maintain 6.5% for FY23.
• Current Account Deficit has also widened to 10 year high i.e 3.3% of GDP(Gross Domestic Product) for FY23.
• Apart from that world bank also reduced the growth forecast from 8.7% to 8% for FY23 in January citing reasons as uncertainties due to Russia-Ukraine War
• The projections made by RBI (Reserve Bank Of India) have also been reduced from 7.8% to 7.2%.

Question:

Q.1 According to Morgan Stanley, consumer price inflation is maintained at what percentage for FY23?
a. 7.2%
b. 3.3%
c. 6.5%
d. 7.6%