Despite developed markets on a weaker footing, India’s growth cycle appears to be holding up and is likely to clock 7.6 per cent this fiscal, which may further improve to 7.8 per cent in the next financial year, a Nomura report says. According to the Japanese financial services firm, even as there are signs of easing growth momentum in G7 economies (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States), the signal for India is one of firming growth momentum. “Ongoing global jitters have raised concerns about India’s growth prospects as well. The OECD’s leading indicator, however, suggests that these fears are unfounded,” the Nomura report said. This divergence in growth cycles between developed markets and India suggests that the latter’s recovery is primarily driven by domestic factors such as rising urban discretionary demand, higher public capex and improving corporate profits. According to the Nomura analysis, although export volumes are muted, import remains robust, reflecting the divergence between domestic and external demand.