New Delhi: Japan’s brokerage company Nomura has drastically reduced India’s growth rate estimates due to the second wave of Corona epidemic. The company has reduced India’s GDP growth estimate to 10.8 per cent during 2021-22. Earlier, Nomura had expected the Indian economy to grow at a rate of 12.6 per cent during the current business year. The company has also said that the lockdown caused by the second wave of Covid-19 is having a very bad effect on the recovery of the Indian economy. According to Nomura, at present, economic activities in the country have fallen to the level where they were in June 2020.
According to an assessment by the Japanese brokerage firm, economic activity during the week ending May 9 has fallen to just 64.5 per cent compared to the level before the epidemic. The situation is so bad that in a week, a huge drop of 5 percent has been seen in economic activity.
Nomura says that the reduction he has made in India’s GDP growth estimates is the result of the slowdown in economic activity due to the lockdown. The company believes that its impact is also likely to be seen as a slowing rate of economic growth during the April-June 2021 quarter. According to the company, despite positive things like vaccination, global recovery and improvement in financial conditions, local conditions will be affected in the April-June quarter.
