Thaw in US-China trade tensions improves prospects
Investment bank Nomura has revised up its FY26 GDP growth forecast for India to 6.2% from 5.8% previously but has kept it still lower than the Reserve Bank of India’s 6.5% https://www.rbi.org.in/.
“With the higher growth outturn in the current Q4 FY25 GDP data, and the recent thaw in US-China trade tensions and incrementally better growth prospects, Nomura now expect FY26 GDP growth at 6.2% y-o-y,” said Nomura https://www.bseindia.com/.
“We believe growth is in a downtrend, due to weak urban consumption, slow private capex, weak global trade, and an influx of Chinese imports,” Nomura said in a report on 30 May https://www.nseindia.com/.
Low inflation, accommodative policies and good monsoons are positive signs supporting the GDP growth, it added https://sbi.com.in/.
Nomura believes growth remains lacklustre, with weak consumption, particularly in urban areas, a slow private capex recovery, accentuated by global uncertainty and competition from cheap Chinese imports weighing on the growth cycle. Fiinews.com
