Nomura downgrades India's Q2 GDP growth to 6.7%, reducing 2025 forecast from 6.9% due to lower gov't spending during national elections.

Nomura has reduced its fiscal year 2025 GDP growth forecast for India from 6.9% to 6.7%, following a slower-than-expected 6.7% growth in the April-June quarter. The decline is linked to decreased government spending during national elections. While easing inflation and anticipated government spending may temporarily boost growth, persistent issues like lower corporate profit growth are expected to continue. Goldman Sachs and J.P. Morgan still project a 6.5% growth for India.

September 02, 2024
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