Corporate earnings are giving a picture in terms of nominal prices, says Aditi Nayar, senior economist at ICRA on GDP. She believes real growth could still be higher than what corporate earnings is pointing at.
During FY12-14, nominal GDP growth averaged 13.4 percent YoY, but was offset by currency depreciation. “In FY15-FY17, we expect nominal GDP to average around the same 13-13.5 percent YoY, but with a better composition of lower inflation and more real growth,†says Nomura.