InvestorQ : Why has Nomura raised the GDP estimate for India when everybody else is cutting the estimates?
sara Kunju made post

Why has Nomura raised the GDP estimate for India when everybody else is cutting the estimates?

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Mary Joseph answered.
5 months ago
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Let me put it this way. Nomura was too conservative at a time when others were a lot more generous with growth estimates for India. In fact, now Nomura has raised India’s GDP forecast for calendar year 2022 by 70 bps to 7.7%. Simultaneously, Nomura also raised India’s current account deficit or CAD estimates to 1.5% of GDP and 1.3% of GDP for calendar years 2021 and 2022 respectively.

According to Nomura, the high frequency growth data has been hinting at a dent to the consumption activity as well as to the services sector. However, these high frequency data points also hint at manufacturing and export performance, which we are already getting to see in the last couple of months. Without appearing too cynical, Nomura has flagged the risk of a third COVID wave.

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