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UBS forecasts India’s nominal GDP growth to moderate to 8.5% in FY26
UBS expects India’s nominal GDP growth to ease to 8.
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.