TestCloud
Prep • Practice • Perform
Log In

Nomura Forecasts India's GDP Growth to Slow Down to 6.2% in FY26.

Economy Business | Dated: 06 Jun 2025

In June 2025, Japanese brokerage firm Nomura projected that India's real GDP growth would ease to 6.2% in FY26. In a research note, the firm highlighted a widening "divergence" between headline indicators like GST collections and core economic metrics such as automobile sales and bank credit growth.

🎯 Key Highlights:

  • - In its recent analysis, Nomura noted that India's real GDP growth declined to 6.5% in FY25, down from 9.2% in FY24, based on the latest official data. Despite the slowdown, the Reserve Bank of India (RBI) projects the growth rate to hold steady at 6.5% going forward, suggesting continued macroeconomic stability.
  • - The brokerage also revised its Nifty target for March 2026, raising it to 26,140 points from the earlier forecast of 24,970.
  • - This upward revision is attributed to strong domestic macroeconomic fundamentals and the Indian market’s ability to remain resilient despite global volatility and earnings downgrades.

💡 Other Important Facts:

  • (i) Nomura expressed a more optimistic outlook on sectors driven by domestic demand, as opposed to export-oriented industries, due to lingering global uncertainties. It also cautioned about a potential delay in the private investment cycle, pointing to continued international challenges affecting investor sentiment.
  • (ii) In contrast, American brokerage BofA Securities retained a constructive stance on India’s long-term outlook. It praised India's consistent delivery of high-quality, compounding stocks and identified nine structural trends that could keep investors engaged.
  • (iii) These include rapid infrastructure growth, rising productivity, accelerating digital transformation, and broader financial inclusion.

📚 Test Your Knowledge:

Recently, which Japanese brokerage firm projected that India’s GDP growth would slow down to 6.2% in FY26?

Correct Answer: Nomura

🚀 Quick Recap:

About Nomura Holdings, Inc.

  • President and Group CEO : Kentaro Okuda
  • Headquarters: Tokyo, Japan