July 3, 2025
2 mins read

India Outpaces Peers in Morgan Stanley Outlook

Global investment firm reaffirms India’s status as top-performing economy in latest growth outlook…reports Asian Lite News

India is set to retain its position as the fastest-growing economy among nations tracked by Morgan Stanley, according to the latest report from the firm’s Global Investment Committee.

The report forecasts India’s real GDP growth at 5.9 per cent on a Q4-over-Q4 basis in 2025 and 6.4 per cent in 2026.

It stated, “India remains the fastest growing economy in our coverage, with real GDP growth at 5.9 per cent, Q4/Q4 in 2025 and 6.4 per cent in 2026.”

The Global Investment Committee is a group of experienced investment professionals from Morgan Stanley & Co. and Morgan Stanley Wealth Management. They meet regularly to assess developments in the global economy and financial markets.

Morgan Stanley.

In its baseline outlook, the committee expects global economic growth to slow down significantly. Global real GDP growth is projected to decline from 3.5 per cent in 2024 to 2.5 per cent in 2025.

The report noted that a trade shock is likely to affect multiple economies at the same time, pushing most of them below their potential growth levels.

It stated, “We anticipate global growth stepping down by a percentage point in 2025 from 2024, with US trade policy and the uncertainty it engenders serving as the main drivers.”

In the United States, Morgan Stanley expects real GDP growth to fall from 2.5 per cent in 2024 to just 1.0 per cent in both 2025 and 2026. Similarly, in the eurozone, growth is not expected to rise above 1 per cent annually during the forecast period, due to weaker private consumption and exports.

China’s economy is also expected to slow down, with tariffs contributing to a reduction of about 0.5 percentage points in real growth in 2025 compared to 2024.

The report forecasts China’s real GDP growth at 4.0 per cent in 2025 and 4.2 per cent in 2026, with deflation remaining a concern. In Japan, the global trade shock is likely to affect exports, but consumer spending is expected to stay strong, helping nominal GDP continue to grow.

Despite global challenges, the report sees some positive momentum across Asia Pacific and emerging markets through mid-2026. It maintains an overweight stance on India, Singapore, and the United Arab Emirates (UAE), driven by ongoing reforms and strong domestic growth trends.

As per the report, while Indian equities are considered expensive when compared to historical levels but the strong domestic retail and institutional investment flows will support high valuations. (ANI)

Previous Story

Microsoft Cuts Deep

Next Story

Bangladesh’s Dark Side Unveiled in Geneva

Latest from -Top News

US Urges India to Rethink Russian Oil Imports

Wright emphasised the priority of ending the conflict while strengthening US-India ties…reports Asian Lite News United States Energy Secretary Chris Wright urged India to reassess its oil imports from Russia, stressing that

Trump, Shehbaz Set for Oval Office Talks

Sharif will arrive in Washington after attending the 80th United Nations General Assembly in New York….reports Asian Lite News US President Donald Trump will hold high-stakes bilateral meetings on Thursday, including a

Farooq Abdullah Urges Dialogue After Ladakh Unrest

Dr Farooq Abdullah warned the Central government that neglecting their long-standing demands could deepen unrest in the sensitive Himalayan region….reports Asian Lite News Former Jammu and Kashmir Chief Minister and National Conference

Nepal lets Gen-Z in on the vote

Nepal clears way for Gen-Z voters with urgent ordinance, as interim PM Sushila Karki expands cabinet, prepares for March 2026 polls, and secures strong support from India….reports Asian Lite News Nepal has

Jaishankar pushes for UNSC reforms 

India hosts joint ministerial with L69 and C10 blocs as External Affairs Minister deepens diplomatic outreach on UNGA sidelines…reports Asian Lite News External Affairs Minister, S Jaishankar, on Wednesday placed the spotlight
Go toTop

Don't Miss

Delhi bans entry of medium, heavy vehicles from Oct 1

The Delhi government on Thursday announced a ban on entry

Turkey’s annual inflation surged to 36.08 percent, highest in 20 years

Turkey’s annual inflation has surged to 36.08 per cent year-on-year