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India's nominal growth can touch 11% in next 12 months: Morgan Stanley’s Ridham DesaiMorgan Stanley India’s Ridham Desai expects a strong boost in loan growth and bank earnings over the next year, supported by RBI policy measures and rising consumption. Bank stocks are likely to drive the market rally as the economy gains momentum.By Anuj Singhal   October 20, 2025, 6:14:21 PM IST (Published)1 Min ReadChoose  CNBC TV18 on Google

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India’s nominal growth could rise to 11% over the next 12 months, according to Ridham Desai, Managing Director at Morgan Stanley India.

Speaking in an interview to CNBC Awaaz, he said the government and the Reserve Bank of India (RBI) are actively focusing on reflation, aiming to support economic expansion.

Desai noted that the RBI has been consistently trying to bolster the economy since February, and its October policy has already provided a boost to loan growth. He expects loan growth to reach 12-13% in the coming year, driven largely by a revival in consumption.

Bank stocks, he added, are likely to lead the broader market rally, with earnings across the sector expected to improve over the next 12 months. The RBI is anticipated to deliver two more rate cuts in this period, further supporting credit growth and economic momentum.

Overall, Desai highlighted that India’s economic recovery is gaining strength, and the combined impact of policy support, rising consumption, and improving bank performance could push nominal growth to 11% within a year.

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