SME Times News Bureau | 04 Sep, 2019
Ratings agency Crisil on Wednesday said it has revised
downwards its India gross domestic product (GDP) growth forecast for fiscal
2020 to 6.3 per cent from an earlier estimated rate of 6.9 per cent.
Just a week back, a plunge in domestic private consumption demand, slump in
manufacturing, halving of merchandise exports growth, and a high-base effect
from last year gnawed away at first-quarter growth which came in at 5 per cent.
Fiscal 2020's first quarter GDP growth estimate at 5 per cent was the slowest
in 25 quarters.
According to the agency, the 6.3 per cent GDP growth rate is under the
assumption that the second quarter will see some mild pick-up in growth, which
continues through the year.
"We expect growth to get some lift from the low base effect that will now
set in (second half fiscal 2019 GDP growth was at 6.2 per cent)," the
"An easing monetary policy, improved transmission of rate cuts, and the
government's minimum income support scheme to farmers would also feed into
consumption. The recently announced steps by the Finance Minister will also
address some pain points and support sentiment."
Recently, Moody’s Investors Service has cut India’s GDP growth rate to 6.2
per cent for calendar year 2019 against its earlier projection of 6.8 per cent.
The rating agency scaled down India’s economic growth to 6.7 per cent for
2020, a cut of another 0.6 percentage points.
down by severe slowdown in manufacturing activity, GDP growth rate in first
quarter (Q1) ended June down to 5 percent, marking the fourth successive
quarter of decline in growth on the trot.