India Economy Set For Goldilocks Period: Nomura

Japanese financial major Nomura said India can become Asia’s fastest growing economy in 2016 as its economy is set for a ’goldilocks’ period ( used to describe a timeframe of high growth and low inflation).

Nomura Chief Economist Rob Subbaraman said “We expect India’s real GDP growth to rise to 6.4 per cent in 2015, from 5.2 per cent in 2014, and further to 6.8 per cent in 2016”.

The global financial services major is also optimistic about “productivity-enhancing reforms” in the country and estimated the GDP growth for 2015 at 6.4 per cent.

Nomura’s composite leading index for India suggests that the economy has already hit its trough and is in the early stages of a business cycle recovery. On reforms, the global financial services major said there would be a continued and steady rollout of reforms but in a “piecemeal” fashion and not big bang.