Slower GDP growth projected

Why is it in the news?
  • As per the estimates released by the government, India’s economy is forecast to grow 5% this fiscal (2019-2020).
  • The estimate is in line with projections made by the Reserve Bank of India.
  • The growth was reported 6.8% in the previous year.
More in the news
  • The 5% growth would be slowest pace in 11 years.
  • Major Attributors:
(1) Private consumption is likely to grow at 5.8% this fiscal, down from 10% in the previous year.
(2) Gross fixed capital formation is estimated to rise less than 1% in FY20, a collapse from near 10% rise in FY19.
(3) Manufacturing growth was seen at 2% year on year, which is a 15-year low, as against 6.9% growth in FY19.
(4) Services sector is projected to slow to 6.9% in FY20 from 7.5% in FY19 and 8.1% in FY18.
  • The government has already announced a number of measures to prop up the economy, such as:
(1) A sharp cut in corporate tax rate
(2) Support for stalled housing projects
(3) Rs 102 lakh crore plan for infrastructure

  • The experts have asked for more in the upcoming budget.
Source
The Hindu.
Posted by Jawwad Kazi on 8th Jan 2020
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