India's growth numbers are likely to slide in the next two quarters, but a sharp rebound is expected in the second half of 2017 as the demonetization impact will be transitory and not long lasting, says a Nomura report. The Japanese financial services major has lowered its January-March 2017 GDP forecast to 5.7% and that of April-June to 6.8% from 7%. For 2016-17, Nomura expects GDP growth of 6.5% as against 7.6% in 2015-16, lower than the official advance estimate of 7.1%. "While we expect a sharp slowdown in the next two quarters, we also expect a V-shaped recovery in the second half of 2017," it said in a research note. Meanwhile, the International Monetary Fund has revised India's GDP growth forecast on note ban woes by one percentage point to 6.6% for the current fiscal.

Source: dna January 18, 2017 07:04 UTC