Indian Economic Recovery Losing Steam: Nomura
India’s economic recovery is losing some steam and there is a likelihood of slowdown in the growth momentum, says Japanese financial services firm Nomura. While improving urban consumption demand and a robust transportation sector are supporting growth, weak external conditions and sluggish investment demand are weighing on the pace of the recovery, it said. There is a “downside risk” to its baseline forecast of 7.8 per cent GDP growth in 2016, it said, adding however that Nomura Composite Leading Index, with a reading still above 100, “suggests a mid-cycle consolidation, rather than the start of a downturn”. “The economic recovery, which began in the fourth quarter of 2014, is headed into a consolidation zone into the second quarter of 2016,” Nomura said in a research note, adding that the growth recovery is not yet broad-based.