MUMBAI: If a 5% GDP growth rate was not bad enough, there are warning signs that in the July-September quarter (Q2FY20) it may have fallen further and sharply. On Tuesday, SBI warned that Q2 GDP growth rate may fall to 4.2%from 5% in Q1, while the securities arm of Kotak Bank estimates it to be at 4.7%. Japanese financial services major Nomura too feels that the GDP growth rate during the previous quarter would be at 4.2%.Economists at several banks and broking houses sharply cut their GDP growth estimates for the quarter, which is set to be announced on November 30, after the index of industrial production (IIP) for September showed a de-growth of 4.1%, a 11-year low mark which followed a -1.1% reading in August. During the corresponding periods of 2018 and 2017, the GDP growth rates were 7% and 6.8%, respectively, data showed. Economists also drastically cut their full year GDP growth estimates for the current fiscal.According to SBI, the low GDP growth reading is expected to be because of low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure. However, economists at the bank believe the slowdown in India’s economy could partially be attributed to the global slowdown. “We believe this growth rate in FY20 should be looked through the prism of synchronized global slowdown…and India cannot be isolated. India is also significantly lower in Economic Uncertainty Index when compared globally,” the report said.The sharp slide in IIP in recent months and the resultant slowdown in economic growth are expected to force the Reserve Bank of India (RBI) to cut rates more aggressively in the coming months, economists said.In its report, Kotak noted that the dismal IIP performance for the second consecutive month was pointing to a deep slump in economic activity. “The weakness was broad-based across a mix of consumption and investment indicators. Owing to weak momentum and lack of any impetus, we revise down our FY20 GDP growth estimate to 5%(from 5.8% earlier). Even though inflation is likely to breach (RBI’s) target of 4%, we expect the (RBI committee) to cut the repo rate by another 50 basis points (100 basis points = one percentage point) through the rest of FY20,” the report said. “Economic activity should improve somewhat from (the second half of FY20) due to favorable base effects, lower policy rates amid easier liquidity conditions and government spending.”Nomura in its report, which was released ahead of the September IIP numbers, said that its high-frequency indicators have plunged and domestic credit conditions remain tight amid weak global demand. “As a result, we now expect India’s economic recovery to be delayed and the subsequent pickup to be sub-par,” a report by Nomura said. Its advised its clients to prepare for a deeper trough and a prolonged bottoming out.