Nomura cuts India`s FY10 growth forecast to 6%
Mumbai: India`s economic growth could slow to 6 percent from 6.3 percent in 2009/10 dragged by contraction in agricultural growth, Nomura said in a recent note.
The government expects Asia`s third largest economy to expand by 6.3 percent in the current fiscal year and the central bank sees it growing by 6 percent with an upward bias.
Nomura cut its 2009/10 agriculture gross domestic product (GDP) growth forecast to 2.2 percent from 3.5 percent due to deficient monsoon rains.
"Uncertainty still prevails about the extent of the crop damage and the monsoon season is not over until end-September, so we are reluctant to implement a larger downgrade at this stage, but are mindful that the risks are still on the downside," economist Sonal Varma wrote.
The note also said the impact of the deficient monsoon on agriculture GDP will be visible from the third quarter of 2009 when summer harvesting begins.
However, Nomura said it sees a recovery in manufacturing and consumption sectors.
It raised its industrial GDP growth forecast to 7.3 percent from 4.9 percent and services to 7.9 percent from 7.8 percent earlier.
Hence it has upgraded its 2010/11 growth forecast to 8 percent from 7.5 percent seen earlier.
Last week Morgan Stanley also cut its 2009/10 growth forecast to 5.8 percent from 6.4 percent earlier in anticipation of a drop in agricultural output.
More from India
More from World
More from Sports
More from Entertaiment
- Jamaat-e-Islami chief announces Rs 100 cr reward for PM Modi's arrest
- Zee Media exclusive interview with victim of Uber molestation
- Maggi samples found unsafe: Delhi government
- DNA: Analysis of Vijay Mallya's 'fund transfer formula'
- IMD forecasts 'deficient' Monsoon, drought-like conditions expected
- Was asked to call Sunanda Pushkar’s death `natural`: AIIMS doctor
- Maggi row: Delhi registers case against Nestle, Kerala withdraws stock from govt stores
- Rahul Gandhi hails BR Ambedkar, takes potshot at Modi-led NDA govt over IIT Madras row
- From being the ‘Dabangg’ girl to ‘Akira’ - Sonakshi Sinha’s journey so far
- China ship carrying 458 on board sinks in Yangtze River: Five dead, hundreds missing