India’s GDP to grow at 7.5% in 2018, says Nomura
Indian economy is expected to witness sharp recovery in the January-March quarter and its GDP growth likely to be around 7.5% for 2018, says a Nomura report
New Delhi: Indian economy is expected to witness sharp recovery in the January-March quarter and its GDP growth likely to be around 7.5% for 2018, says a Nomura report.
According to Japanese financial services major Nomura’s Composite Leading Index (CLI), some growth consolidation is likely in the Q4 (October-December), followed by a sharp recovery in Q1 (January-March) 2018 due to ongoing remonetisation and improving global demand.
“We remain bullish on the growth outlook. We expect GDP growth to rise to 6.7% year-on-year in Q4 (October- December) from 6.3% in Q3 (July-September), followed by a stronger rebound to 7.5% in 2018,” Nomura said in a research note. The report further noted that a tightening of monetary policy is likely owing to inflationary pressures and higher oil prices.
Moreover, the minutes of the 6 December monetary policy committee (MPC) meeting suggest that even as most members saw upside risks to inflation, weak growth concerns have held them back.
“We expect slightly more hawkish rhetoric from the monetary policy committee in Q2 2018, when both growth and inflation are likely to be significantly higher, but we believe rates will be left unchanged through 2018 due to an ample real rate cushion,” Nomura said.
The Reserve Bank in its fifth bi-monthly review of this fiscal kept repo rate unchanged at 6 per cent and reverse repo at 5.75%, while raising the inflation forecast for the remainder of 2017-18 to 4.3-4.7%.
- Trade brawls get world’s top central bankers worried for growth
- India’s retaliatory tariff on US imports to come into effect from 4 August
- Monsoon may revive from next week: IMD forecast
- Impact of Metro on Hyderabad, Bengaluru traffic: What data shows
- Sushma Swaraj holds trade talks with Luxembourg PM Xavier Bettel
Editor's Picks »
- Awareness of cyber threats to cryptocurrencies is very low in India: report
- JSW Steel plans bid for ArcelorMittal’s Galati plant in Romanian
- NSE algo trading case: Sebi to take action against involved entities
- RBI asks banks to upgrade ATMs for greater security
- Zuckerberg on cusp of topping Buffett with Facebook at $200
- Why Indian paint makers are shifting to water-based paints
- 2019 elections still some time away but defence stocks get the jitters
- Complan and Horlicks sale signals low energy in health drinks market
- With fall of the last dove, MPC minutes portend more than one RBI rate hike
- RITES IPO ticks the valuations box, but not the growth one