Nomura lowered its FY25 economic growth forecast for India to 6.7 per cent year-on-year from 6.9 per cent after official data on Friday showed the country's gross domestic product (GDP) grew slower than expected on an annual basis in the April-June quarter.
India's GDP rose 6.7 per cent, less than the 6.9 per cent forecast by a Reuters poll and the 7.8 per cent growth in the previous quarter, as a decline in government spending during national elections weighed.
A slowdown in India's economy is expected to be temporary as economists forecast that easing inflation and a pickup in government spending will shore up growth in the coming months.
Separately, Goldman Sachs and J.P.Morgan maintained their FY25 GDP forecast for Asia's third-largest economy at 6.5 per cent.