INDIA GDP FORECAST: As per  a report by Morgan Stanley, the Indian economy plays a significant role in the superior performance of Asian economies, thus the broad-based rebound in demand contrasts with the weakening observed elsewhere in the world.

Morgan Stanley says , India would contribute 16% of the world's gross domestic product (GDP) between 2023 and 2024 thanks to a combination of structural and cyclical tailwinds. The research stated that a range of indicators in recent months "indicate that India's recovery is strong and broad-based, and is well-placed to sustain growth rates of above 6%."

The Purchasing Manager's Index (PMI) is at a 13-year high and manufacturing PMI is near a 11-year high, both well above that of other economies; passenger vehicle sales are at 131 per cent of pre-Covid levels, real goods and services tax collections are 35 per cent higher than pre-Covid and services exports have risen by 84 per cent since Oct-20, Morgan Stanley said. A strong domestic demand and services export will offset the downside in goods export. Domestic demand is supported by healthy balance sheets. "Meanwhile, the key macro stability indicators of inflation and current account deficit have moved back into policy makers' comfort zones and we expect it will remain there for some time. This suggests that policy makers will not have to bring monetary policy into restrictive territory, allowing economic expansion further room to run," Morgan Stanley said.

"India's strong growth outlook stands out as the best among large economies and we forecast it will contribute 16 per cent to global GDP growth over 2023-24." Meanwhile, India and the European Union (EU) have agreed to expedite the ongoing negotiations for a free trade agreement by finding convergence on all issues, an official statement said on Tuesday.

The issue was discussed in a meeting in Brussels between Piyush Goyal, the minister of commerce and industry, and Valdis Dombrovskis, the executive vice-president of the European Commission and commissioner for trade. They connected during the first Ministerial gathering of the Trade and Technology Council (TTC) between India and the European Union. In addition, key officials from both sides were present for the meeting. 

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