Morgan Stanley has raised India's FY27 growth forecast to 6.7% from 6.2%, citing strong domestic demand despite global uncertainties. While the ongoing Iran conflict and elevated oil prices could pressure growth, the firm believes urban demand, government spending on infrastructure and defence, and services exports will help offset the impact. For FY28, it projects gross domestic product (GDP) growth of 7%. India's FY26 growth is estimated at 7.6%, based on government data.