Economy likely to grow 6.7% in FY25 due to weaker Q2 performance: Report

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New Delhi: The Indian economy is expected to grow by 6.7% in 2024-25 due to weaker performance in the second quarter, according to a report released by Morgan Stanley on Monday..

High frequency indicators for July-September have shown weak growth, such as goods and services tax (GST) collections falling to a 40-month low in September, core sector output declining in August, manufacturing Purchasing Managers' Index (PMI) declining to an eight-month low and moderating passenger vehicle and two-wheeler sales, said the report titled '2025 India Economic Outlook-Domestic Demand to Carry Growth Baton'...

Growth is anticipated to remain steady at 6.5% in 2025-26 and 2026-27, supported by domestic demand, the report highlighted..

Urban demand will benefit from stronger job growth and improved financial conditions, although risks to consumption due to higher inflation persist..

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