Categories: Economy

Nomura Prediction for India in FY24: 5.2% Slowdown in Growth Rate

Nomura Prediction for India in FY24: Nomura predicts that India’s growth will drastically slow down to 5.2% in 2023–24 (FY24) from 7% in the current fiscal year due to the spillover effects of the global downturn. The Japanese brokerage urged policy vigilance in the face of global challenges and emphasised that macro stability, not development, should be the first focus.

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Nomura Prediction for India in FY24: Key Points

In FY20, the economy grew at 4%, a multi-year low. It is anticipated that growth will decelerate in FY24, just before the following national elections.
Nomura predicts that inflation would average 6.8% in FY23, slightly higher than the Reserve Bank of India’s prediction of 6.7%, and then decline to 5.3% in FY24.
Spending reductions would be required in order to fulfil the 6.4% budget deficit objective for FY23, and it was noted that a target of under 6% for FY24 was “circumspect”.
The company predicted that the RBI will boost the terminal repo rate by 25 basis points in February and 35 basis points in December, respectively, to reach 6.50%.
Since May, the RBI has increased the repo rate by 190 basis points to control inflation.