Home / Knowledge / News / Textiles / India's economy likely to grow at 4.3% in Q4 2019: Nomura

India's economy likely to grow at 4.3% in Q4 2019: Nomura

15
Dec '19
Pic: Shutterstock
Pic: Shutterstock
India's economy is likely to grow at 4.3 per cent in last quarter of 2019 amid concerns over crisis involving non-banking financial companies (NBFC), according to Nomura, which said 2020 first quarter will see a ‘weak’ uptick in gross domestic product (GDP) growth at 4.7 per cent. Contrary to optimism that growth has likely bottomed, Nomura believes it will slide further.

"Domestic credit conditions remain tight as market concerns in the shadow banking (NBFC banking) have persisted too long," a news agency quoted Sonal Varma, chief economist for India and Asia at the Japanese financial services company, as saying.

Nomura expects 4.9 per cent GDP growth in 2019, down from an earlier estimate of 5.3 per cent, and 5.5 per cent in 2020 against an earlier projection of 6.3 per cent. In 2021, it sees India's economic growth at 6.5 per cent.

"On financial year basis, we expect GDP growth of 4.7 per cent in FY20, and 5.7 per cent in FY21, suggesting a delayed recovery and below-potential growth through end 2020," Varma said in Singapore.

The Reserve Bank of India is likely to slash key policy rates in the second quarter of 2020. However, the burden of growth heavy lifting now seems to be shifting to fiscal policies, she wrote in Nomura report ‘Asia 2020 Outlook’.

Moreover, the central bank will stay in pause mode in February 2020 as well, according to the report.

Nomura remains concerned about growth prospects, saying cyclical factors that were responsible for the slowdown look to persist well into 2020.

Moreover, the current phase of slowdown comes in the middle of a broader downturn in trend since 2016, driven by a slump in investments and employment opportunities.

Fibre2Fashion News Desk (DS)


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 17th Jan 2020

Industry unhappy with retrospective withdrawal of MEIS

Apparel manufacturers and exporters are not happy with the...

Pic: Shutterstock

Textiles | On 17th Jan 2020

US Senate approves USMCA; NRF, NCTO welcome move

The US Senate yesterday approved by a vote of 89-10 the...

Pic: Shutterstock

Textiles | On 17th Jan 2020

Pak sees exports growth of $3.2 bn if 5% of CPFTA realised

Pakistan is hopeful of exports growth worth $3.2 billion in case just ...

Interviews View All

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Top executives, Textile industry, India

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Ritu Ajbani & Neha Agarwal,

Ritu Ajbani & Neha Agarwal

Petit Royal, co-founded by entrepreneurs <b>Ritu Ajbani and Neha...

Atul Mittal,

Atul Mittal

Established in 1997, Pratibha Syntex produces over 60 million pieces of...

Matthias Eilert,

Matthias Eilert

Germany-based Forbo Movement Systems division is a global leader in...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Prof Seokheun (Sean) Choi, Binghamton University, State University of New York (SUNY)

Prof Seokheun (Sean) Choi
Binghamton University, State University of New York (SUNY)

A team of researchers from the State University of New York (SUNY),...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Vaanee Bhatia, Gritstones Clothing

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


January 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search