India’s GDP growth is to be higher at 6.6% in the June quarter from the previous three months this year.
According to Japanese financial services major Nomura, the growth which was higher in end-of March quarter had slightly lower towards end of the June quarter due to destocking and uncertainty ahead of the Goods and Services tax (GST).
- According to Nomura it is expected average GDP growth in Q2 (April-June) to be modestly higher at 6.6% from 6.1% in Q1 (January-March).
- In the second half (H2) of 2017, growth recovery is expected to accelerate to 7.4%
- The pick-up growth numbers in the second half is likely to be led by a recommencement of production after GST, ongoing remonetisation, normal monsoons, stronger rural consumption and easier financial conditions (lower lending rates, liquidity).
- In the March quarter India lost the tag of the fastest growing economy to China with a GDP growth of 6.1% which fallen down the 2016-17 expansion to 7.1%.
- Pay hikes for state government employees and a pick-up in external demand could also be one of the factors.
- As per the Nomura excluding the GST, indicators of consumption appear to have stable and for services continue to improve.
Nomura is a wholly owned subsidiary of Nomura Holdings, Inc. (NHI), which forms part of the Nomura Group.It plays a central role in the securities business, the Group’s core business.
- Nomura is a financial services group and global investment bank.
- Founded on: 25th December 1925
- HQ: Nihonbashi Chuo, Tokyo Japan
- Chairman: Nobuyuki Koga