- The World Bank has lowered India’s GDP growth forecast.
- In 2019-2020, India’s GDP growth rate may be just five percent.
- The World Bank has projected a 5.8 percent increase in India’s GDP in the next financial year.
The World Bank has lowered India’s GDP growth forecast. In this context, the World Bank has said that India’s GDP growth rate in FY 2019-2020 can be only five percent. But the World Bank has projected a 5.8 percent increase in India’s GDP in the next financial year. This is a major cut in the World Bank estimate. Earlier in October, the World Bank had said that India’s GDP could grow by six percent for the financial year 2019-20.
The World Bank lowered India’s GDP growth forecast
In the Global Economic Prospects report, the World Bank said that “the debt distribution of non-banking financial companies in India remains weak.”
Pakistan’s GDP can remain as much
Also, the World Bank also said that Bangladesh will have a faster growth rate than India. In Bangladesh, GDP can grow by more than seven percent in this financial year. At the same time, the GDP of Pakistan running unhealthy may increase by just three percent in this financial year.
The central government also expressed this estimate
Earlier, the Central Government also released the first estimate of the growth rate for the financial year 2019-20. Accordingly, the GDP will be 5 percent in the current financial year, the lowest in the last decade. The government will release the second estimate of the financial year in February after the budget.
Was 6.8 percent in 2018-19
The growth rate in 2018-19 was 6.8 percent. According to this, then there is a decline of about 1.8 percent. All the world’s rating agencies and the International Monetary Fund have also drastically reduced India’s GDP estimate. Moody’s has reduced its gross domestic product (GDP) estimate for the fiscal year ending March 2020 from 5.8 percent to 4.9 percent. Fitch has predicted a growth rate of 4.6 percent for FY 2019-20. At the same time, it is estimated to be 5.6 percent for 2020-21 and 6.5 percent for 2021-22.
The growth rate was 4.5 percent in July-September
India’s economic growth rate fell to just 4.5 percent during the July-September, 2019 quarter, which is a six-and-a-half-year low. This is the sixth consecutive quarter when sluggishness has been recorded in GDP. Earlier, the GDP growth rate was 4.3 percent in the January-March 2013 quarter, while it was seven percent in the same period a year ago, ie, July-September, 2018 quarter. In the first quarter of the current financial year, the growth rate was five percent.
RBI also reduced GDP estimates
Earlier on 5 December 2019, the Reserve Bank of India (RBI) also lowered GDP estimates. According to the central bank, GDP will decline further during 2019-20 and may fall from 6.1 percent to five percent. This has shocked the economy.
