Bangladesh Stabilises Growth Rate of 7%, Indian Economy Faces Slowdown
World Bank projects 5% growth rate for India. Points at staggering economic growth and decline in the Indian market.
In its Global Economic Prospects report released on Wednesday, the World Bank projected a five per cent growth rate for India in the 2019-2020 fiscal, also stating that it might recover to 5.8 per cent in the following financial year.
The Washington-based organization mentioned lessened consumption and tighter credit conditions in the non-banking sector are contributing to a substantial weakening of the domestic demand in the country.
“In India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to five per cent in fiscal year 2019/20, which ends March 31, and recover to 5.8 per cent the following fiscal year,” the World Bank said on Wednesday.
To retain our initiative towards free spirited and independent journalism we require your support |Pay Now
“In India, activity was constrained by insufficient credit availability, as well as by subdued private consumption,” the report stated.
“Growth in India is projected to decelerate to five per cent in FY(financial year) 2019/20 amid enduring financial sector issues. Key risks to the outlook include a sharper-than-expected slowdown in major economies, a re-escalation of regional geopolitical tensions, and a setback in reforms to address impaired balance sheets in the financial and corporate sectors,” the report further said.
Meanwhile, for India’s neighbouring countries Bangladesh, the growth rate has been projected to remain above seven per cent and, in Pakistan, it is projected to languish at three per cent or less through 2020 as macroeconomic stabilisation efforts weigh on economic activity.
The report also highlighted that global economic growth is to edge up to 2.5 per cent in 2020 as investment and trade will gradually recover from last year’s significant weakness, however, it warned that downward risks still persist.
The bank highlighted that in the case of India, economic activity slowed substantially in 2019, with the deceleration most pronounced in the manufacturing and agriculture sectors, whereas government-related services sub-sectors received significant support from public spending.
This is the slowest growth forecast since the 3.1% rate recorded in financial year 2008-09 when the global financial crisis had derailed the economy. GDP growth decelerated to five percent and 4.5 per cent in the April-June and July-September quarters of 2019, respectively, the lowest readings since 2013, it said. The World Bank’s latest update is also in line with the Reserve Bank of India’s October policy estimate in which it slashed the economy’s expected growth to 5% this fiscal year.
Now that you are here...
From bottled water to oxygen cans, not even the basics are free in a market-driven world. Why then, do we take free and independent journalism for granted? We find ourselves at a time when more people like you, are reading and coming out in support of The New Leam’s independent, in-depth and throughly issue based journalism than ever before. From grassroot stories and field-reports, to in-depth analysis of the pertinent political issues of our times, to news on gender, culture and educational issues- The New Leam has been dedicated to bringing out stories that speak out the soul of India and take you beyond the propaganda-filled corridors of mainstream journalism in India. We have made an important choice of keeping our journalism free of vested political interests, commercial funding and influence of partisan stakeholders, so that we can bring forward news and stories based on facts and provide a platform where readers can find information with integrity and a journalism premised on honesty.
Your support to The New Leam is your contribution towards giving a voice to the voiceless, going to the depths of issues that others shy away from and rigorously illuminating the flame of criticality and courage in dark times. We hope that you will come forward to support The New Leam today so that we can keep delivering quality-independent journalism to you and inform public opinion in the right direction. No matter how big or small your contribution may be, it is tremendously important. It takes only a moment, Support The New Leam now!