India GDP growth seen at 5.7% in Q1 - Nomura

The Nomura analysts, Sonal Varma and Aurodeep Nandi, said in their latest client note, the Indian economy is likely to slow down further to 5.7% in April-June from a five-year low of 5.8% in January-March.

Key Quotes:

“High-frequency indicators continue to show familiar pain points - a deep contraction in consumption, weak investment, a slowing external sector and an under-performing services sector.

We believe that the nature of the easing will change hereon from cutting policy rates to ensuring greater transmission via ensuring adequate liquidity.

The Reserve Bank of India (RBI) to cut the key rate by 15bps in October. “