UBS projects India’s nominal GDP growth to slow to 8.5% in FY2025-26, down from 10.2% in the previous year, citing moderation in corporate earnings and investment activity. The report anticipates a 25-basis-point rate cut by the Reserve Bank of India before a prolonged pause through FY27. While domestic consumption remains strong, export headwinds and global demand weakness could temper momentum. Economists expect fiscal prudence and targeted capex to sustain medium-term stability despite near-term moderation in growth metrics.