The market remains confident that India’s new prime minister, Narendra Modi, will follow through on his policies to reform and stimulate the country’s economy. Rating agency Standard & Poor’s last week upgraded its outlook for India from “negative” to “stable.” Meanwhile the Japanese brokerage firm Nomura said it expects the Indian government’s “proactive policy measures ... should help put the economy back on a high growth trajectory.” Nomura now expects India’s gross domestic product to grow by 6% this year, up from its previous forecast of 4.7%.
