Covid-19 impact: India's GDP to contract 6.1% in FY21, says Nomura

Nomura said the June quarter will be the 'nadir' from a growth perspective and the economy will contract by 15.2 per cent

Economic activity continues to remain weak and will lead to a 6.1 per cent contraction in India's GDP in the current fiscal, a foreign brokerage said on Tuesday.

The Reserve Bank is likely to pause at the upcoming policy review in August and cut rates by 25 basis points each in the October and December reviews, Japanese brokerage Nomura said in a report.

All the analysts expect a contraction in the GDP due to the Covid-19 pandemic, which has impacted both supply and demand forces in the economy since March. Official data also suggests a surge in inflation, which will