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World Bank cuts India's growth projection
Why is it in the news ?
- According to the latest World Bank projections, India's growth rate is projected to fall to 6%.
More from the World Bank
- Gradual Recovery: The country was expected to gradually recover to 6.9% in 2021 and 7.2% in 2022, if the monetary stance would remain accommodative.
- The growth in agriculture and the services sector moderated to 2.9 and 7.5 per cent, respectively.
- Decline in Private consumption: In the first quarter of 2019-20, the economy experienced a sharp decline in private consumption on the demand side and the weakening of growth in both industry and services on the supply side.
- Consumption was likely to remain depressed due to slow growth in rural income and domestic demand.
- Trade Imbalance: The current account deficit had widened to 2.1% of the GDP in 2018-19 from 1.8% a year before, mostly reflecting a deteriorating trade balance.
- Poverty: Poverty has continued to decline, but at a slower pace than earlier. Between 2011-12 and 2015-16, the poverty rate declined from 21.6 to 13.4% (USD 1.90 PPP/day).
- GST and Demonetisation: Disruptions brought about by the introduction of the GST and demonetisation, may have heightened the risks for the poorest households.
Source
The Hindu.