Global Financial Services Firm Nomura slashed India’s GDP Projection

Nomura, the global financial services firm, on 26 June 2012 slashed the country's growth forecast for the fiscal year 2012-13 to 5.8 per cent, from 6.7 per cent earlier. Nomura also cut down India’s GDP forecast for 2013-14 to 6.6 per cent from the earlier 6.9 per cent.

The government in its budgetary projection of GDP growth, estimated the growth rate to be around 7.6 per cent in the fiscal year 2012-13. India's economic growth rate slipped to 6.5 per cent in 2011-12, while it had registered 8.4 per cent growth in the previous two financial years.

The global financial services firm also hiked fiscal deficit forecast for India to 5.8 per cent of GDP in the current fiscal from 5.2 per cent. Government in its budget projections aimed fiscal deficit to bring down to 5.1 per cent in 2012-13 from 5.76 per cent in the previous fiscal.