InvestorQ : Why did Nomura trim India’s growth expectations?
Indrajeet Kashyap made post

Why did Nomura trim India’s growth expectations?

Rohan Bhadani answered.
2 weeks ago

Japanese investment bank Nomura lowered its growth expectations for India to 12.6% from 13.5% earlier. Nomura revised its estimates as the second wave of coronavirus grips the country, with several states announcing lockdowns, which will likely drag growth in the near term.

In a previous report at the beginning of the month, Nomura had warned that the economy’s growth could fall to 12.2% if the second wave of Covid-19 worsened. The global bank also altered its gross domestic product (GDP) growth projection to 11.5% for the ongoing calendar year from 12.4% before. Nomura modified retail inflation at 4.7% in 2021, down from 5% earlier but still above the 4% midpoint of the Reserve Bank of India’s inflation target range, while core inflation would remain elevated at 5.7%.

The brokerage house also said that India could clock around 32.5% GDP growth in the first quarter of FY22, which is down from 34.5% growth expected earlier, primarily due to the low base (24.4 percent degrowth in Q1FY21) last year.