UBS Ups India's FY26 GDP Forecast Amid Trade Tensions
UBS has raised its FY26 GDP growth forecast for India to 6.4% from 6%, citing domestic demand momentum and potential tariff easing. Despite a slowed growth to 7.4% in the March quarter, the brokerage sees optimism in the US-India trade deal and lower global oil prices supporting economic prospects.
- Country:
- India
On Tuesday, Swiss brokerage UBS updated its economic forecast, raising India's FY26 GDP growth projection to 6.4% from a previous estimate of 6%. This revision underscores the country's economic resilience amidst ongoing trade tensions.
The adjustment follows official reports indicating that India's GDP growth slowed to 7.4% in the March quarter, reducing the annual growth rate to 6.5% for 2024-25 from 9.2% in FY24.
UBS attributes the optimistic outlook to a stronger domestic demand, an anticipated reduction in Chinese import tariffs, potential US-India trade agreements, and globally declining crude oil prices. However, it warned of risks from China's manufacturing capacity and international uncertainties affecting private investments.
(With inputs from agencies.)
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