New Delhi: Attributing economic slowdown in India to monetary and fiscal policy, global financial service provider Nomura has lowered the country's GDP growth projection for 2012 to 5.5 per cent from 6.1 percent.
It has also lowered the projection for India's economic growth for 2013 to 6.6 percent from 7.1 percent.
"Our economics team cut India's GDP growth forecast (to 5.5 percent from 6.1 percent for 2012 and 6.6 percent from 7.1 percent for 2013) while revising up WPI inflation forecast to 7.6 percent from 7.1 percent, citing the deadlock in its monetary and fiscal policy," it said in a report.
Nomura further said that the outlook is "less sanguine" for India.
Earlier, Nomura had sharply lowered India's economic growth forecast for the financial year 2012-13 to 5.8 percent from its earlier estimate of by 6.7 percent saying the country's monetary and fiscal policies are at loggerheads.
The government is aiming at GDP growth rate of about 7.6 percent this fiscal. India's economic growth rate slowed to 6.5 percent in 2011-12 from 8.4 percent in the previous two fiscals. The GDP growth rate in the last fiscal fiscal was a nine-year low.
In another report, Nomura said that in India a "stagflation" state may emerge due to weak domestic demand and elevated inflationary expectations.
First Published: Tuesday, July 3, 2012, 20:37