Nomura Securities: Expects India's GDP growth rate to decline to 6.9% in the fiscal year 2025, and increase to 7.2% in the fiscal year 2026.

Jins data on July 24th, Nomura Securities analysts said that India's budget plan has the elements of mid-term economic rise, but reviving consumption will be key. They said that in the short term, the increase in government spending that meets budget targets may boost the economic rise cycle, but the key to enhancing rise momentum lies in the simultaneous recovery of private consumption and capital expenditure. Nomura added that despite a series of extensive policy stimulus measures, a comprehensive recovery in private capital expenditure has been difficult to achieve. As time goes on, the demand for continued recovery to drive the increase in capacity utilization is crucial to driving the rise in private capital expenditure. Nomura Securities expects India's GDP growth rate in the 2025 fiscal year to decrease from 8.2% in the 2024 fiscal year to 6.9%. In the 2026 fiscal year, strong mid-term rise momentum, robust fundamentals, and continuous reforms will enable GDP rise to reach 7.2%.