It is being expected that the economic growth of India would be hitting a new low last quarter, with early projections showing growth below 5 percent.
The growth forecasts were lowered by the Economists at Capital Economics Ltd, Nomura Holdings Inc., as well as, State Bank for the quarter ended September to between 4.2 percent and 4.7 percent. The data is scheduled to be published by the government on 29th Nov.
As a new base was adopted by the authorities for gross domestic product data in 2012 hence the growth of 4.2 percent would be the lowest. There was an expansion of 5 percent of the economy in the past 3 months through June.
The Chief Economist for India, and Asia in general, at Nomura, Sonal Varma, passed a statement saying that they now have a belief that gross domestic product growth did not bottom in” the period of April to June. He added that high-frequency indicators have plunged and domestic credit conditions remain constricted amidst weak demand across the globe.
Interest rates have been cut by the Reserve Bank of India 5 times this year for boosting growth, where fiscal measures complement the monetary easing, and inclusive of20 billion dollars of tax cuts by firms.
The Chief Economic Adviser at State Bank in Mumbai, Soumya Kanti Ghosh, passed a statement that said that we are now anticipating greater rate cuts from RBI in December. However, such a rate cut is not likely to result in any immediate material revival, he added.
Last week, a statement came from Finance Minister Nirmala Sitharaman who said that it was too early to state if there was bottoming out of the slowdown. New investments are being planned which may take time to materialize, she stated.