Economic momentum holding up despite trade war; FY26 GDP target raised to 6.4%: UBS

UBS has revised India's FY26 GDP growth forecast upwards to 6.4% from 6%, citing resilient domestic demand and potential trade benefits. The brokerage anticipates increased household consumption driven by favorable monsoon expectations and policy stimulus. While capital expenditure growth may slow, the RBI is expected to support growth through rate cuts.