Nomura has downgraded India's GDP growth forecast for FY25 to 6.7% year-on-year (YoY), below the Reserve Bank of India's (RBI) projection of 7.2%.
Analysts attribute this revision to disappointing vehicle sales figures for July and August, reflecting a slowdown. They suggest this drop might be due to reduced post-pandemic demand, high interest rates, and decreased government spending related to elections. The analysts also noted a potential downside risk to their FY26 GDP growth estimate of 7.2%.