Japanese brokerage Nomura on Tuesday cut its GDP growth estimate for the current 2021-22 fiscal to 10.8% from the earlier 12.6%, blaming the impact of the second wave-induced lockdowns.
It said the activity levels have dropped further to 64.5% of the pre-pandemic levels in the week to May 9 as per a proprietary index, after a further 5 percentage points drop in the week.
The activity levels, at present, are at par with those seen in June last year.
The country has reported over 4 lakh new infections and 4,000 deaths a day during the ongoing second wave of the COVID-19 infections, leading over 20 States to impose lockdowns or lockdown-like restrictions as a desperate measure to restrict the virus spread.
“We expect a localised hit in Q2 (April-June) and believe that medium-term tailwinds (like vaccine pivot, global recoverys) remain intact,” it said.
