The slowdown is deeper than anticipated and will be prolonged, ratings agency Crisil warned on Monday slashing its growth estimate sharply to a low 5.1 per cent from 6.3 per cent earlier.
The agency attributed the sharp revision to various high-frequency indicators showing a softness and partly blamed the same to the reforms like GST, real estate regulation, and the bankruptcy code which are still a “drag” on the economy which is yet to adjust to the changes unveiled years before. The Crisil’s estimate is among the lowest, but still above Japanese brokerage Nomura’s 4.7 per cent forecast.