With PM Modi’s austerity call earlier this week, the country is worried about the potential fallout of the prolonged crisis across West Asia. According to Morgan Stanley’s mid-year outlook for India, the real GDP growth is estimated to be at 6.7% for FY27 and 7% for FY28. The Morgan Stanley report stated that the slowdown is largely a consequence of the ongoing Middle East conflict and its effects on global energy prices, not a sign of anything structurally wrong with India’s growth story. Domestic demand, they argue, remains the economy’s anchor.