Nomura marginally lowered India’s GDP growth for FY’17 to 7.7% from its earlier forecast of 7.8% on identifying no concrete signs a turnaround in the nation’s exports or private capex.
Underlying recovery in India’s economy continued at a gradual pace, driven primarily by private consumption.
Nomura stated that, going forward, there were three positive catalysts to India’s growth, which comprised of the seventh pay commission hikes, a normal monsoon and ongoing public capex.
However, India’s leading indicators suggested that there was still no sign of a turnaround in export volumes or increased private capex.
Regarding the Reserve Bank of India’s (RBI) monetary policy stance, the report said the central bank is expected to be on hold this year.
Source: Economic Times