It highlighted that the current account deficit could widen to 2.5%, close to RBI's comfort zone. "With macro stability indicators stretched under this scenario, we think currency depreciation pressures could rise and lead RBI to restart its rate hike cycle," said the report. However, if conditions remain favourable, India's growth could average 6.5% for the decade, according to Morgan Stanley. It said growth could move higher if the government makes more concerted efforts to expand infrastructure.
