India's Economic Growth Set to Miss Expectations

Forex - Nomura analysts stated that India's GDP growth is unlikely to meet the central bank's expectations in the fiscal year 2025, which ends in March 2025. The State Bank of India (SBI) has revised its GDP growth forecast for India for the fiscal year 2025 to 6.3%, slightly below the National Statistical Office's (NSO) estimate of 6.4%. Sonal Varma and Aurodeep Nandi from Nomura indicated that real GDP growth is expected to decline from 8.2% in the previous fiscal year to 6.4%, falling short of both the RBI and the finance ministry's forecasts. SBI noted a "downward bias" in its projections, referring to various challenges affecting economic growth. According to the SBI report, the slowdown in manufacturing and credit growth, along with a high base effect, has reduced expectations for the fiscal year 2025. Additionally, the First Advance Estimates (FAE) for GDP reflect a broader slowdown in total demand throughout the fiscal year.