Nomura predicts Indian GDP to contract by 5.2% in FY21, more rate cuts

Analysts at Goldman Sachs expect the Indian economy to contract 0.4 per cent in FY21 versus consensus median 2.7 per cent

Nomura and Goldman Sachs have cut their growth projections for India in financial year 2020-21 (FY21) and expect the Reserve Bank of India (RBI) to cut rates sharply to stem the economic rout caused by the national lockdown to contain the coronavirus pandemic.

Analysts at Nomura have lowered their GDP growth forecast for India to a negative 5 per cent / 5 per cent contraction y-o-y (from -0.5 per cent forecast earlier) for 2020, but raised it to 7.9 per cent (from 7.3 per cent forecast earlier) for 2021.

Nomura has lowered India's FY21 GDP growth forecast to -5.2% vs