Brokerage house Nomura today said the downward revision of FY13 growth figure by the Central Statistics Office (CSO) will have a positive base effect for GDP expansion in the current fiscal.
"The downward revision in FY13 growth numbers should create a marginally positive base effect for the current fiscal GDP growth rate," Nomura said in a report here.
The report, however, did not quantify the estimated GDP growth in FY14.
Over the weekend, the CSO slashed FY13 GDP expansion to 4.5% from 5% earlier - the lowest in over a decade - on account of subdued growth in agriculture, mining, electricity and construction sectors.
According to the revised estimates for the last fiscal, the primary sector, which includes agriculture, fishing, mining and quarrying, grew by just 1% against the earlier estimate of 1.6%.
Growth in the secondary sector, consisting of manufacturing, electricity, gas, water supply and construction, was 1.2%, down from the original estimate of 2.3%.
The CSO also revised GDP growth for FY12 to 6.7% from 6.2%, while the FY11 expansion figure was re-adjusted downwards to 8.9% from 9.3%.
Meanwhile, a research report from the State Bank of India said the second revision of FY12 growth to 6.7% was primarily due to significant upward revision in manufacturing sector.
"In FY14, we expect GDP growth at 4.8% with a downward bias, leaving the economy with two sub-5% growth years in succession," the SBI report said.
