Major setback: World Bank report pegs India's FY20 growth rate at 6%


New Delhi, Oct 13 (IANS): In a major setback for India's economic outlook, a World Bank report on Sunday estimated India's economic growth in the current fiscal at 6 per cent, lower than the Reserve Bank of India's latest revised outlook of 6.1 per cent.

This comes as another bleak outlook for the economy, after recent downward revision of GDP estimate by Asian Development Bank (ADB) and Organisation of Economic Co-operation and Development (OECD) apart from the RBI and a couple of rating agencies.

"In India, after the broad-based deceleration in the first quarters of this fiscal year, growth is projected to fall to 6.0 per cent this fiscal year," said the report named "South Asia Economic Focus, Fall 2019: Making (De)centralization Work".

It, however, said that growth is expected to gradually recover to 6.9 per cent in fiscal year 2020 and to 7.2 per cent in the following year.

The growth forecast for India for the financial year 2019-20 was even lower than that of Nepal and Bangladesh which the estimates to grow at 6.5 per cent and 7.2 per cent respectively.

The report said: "The remarkable weakness of Indian economic activity during the first half of 2019 is largely driven by external and cyclical factors. However, during this downturn several structural problems have come to the surface."

One of these problems is related to vulnerabilities in the financial markets that have constrained credit supply, the report said, adding that financial sector reforms are needed to bring India back to a rapid growth path.

The estimate comes, just days after Moody's Investor Services and India Ratings and Research reduced their FY20 growth forecast for India to 5.8 per cent and 6.1 per cent, respectively.

The RBI in its Monetary Policy Report - October 2019, sharply revised the India's GDP growth estimate for the current fiscal to 6.1 per cent from 6.9 per cent. Recently, the ADB and the OECD lowered India's growth forecasts to 6.5% and 5.9%, respectively.

--IANS

rrb/vin

  

Comment on this article

  • ad, mangaluru

    Mon, Oct 14 2019

    Modis 5 trillion HOLE in the economy enough to move him from Delhi to Gujarat . Congress will fill that hole with good governance of economy.

    DisAgree Agree [3] Reply Report Abuse

  • Abdul Aleem Faroqui, UAE

    Mon, Oct 14 2019

    Forget world bank report.. Go watch movies.. Itseems 120 crore in a day as per Mr.Ravi Shankar.. and our PM says “Everything is fine in India”...

    DisAgree Agree [1] Reply Report Abuse

  • Vijay, Mangalore

    Sun, Oct 13 2019

    This slowdown won't end soon . Atleast 2-3years more. No more cheering.

    DisAgree [1] Agree [6] Reply Report Abuse

  • Indian, Udupi

    Sun, Oct 13 2019

    By profession I'm an quality inspector and I tour almost every industrial area in PAN India , from past 3-4 years have seen lot of industries shutdown and still most heavy manufacturing units are sick And are unable to pay their employees salary. This is an fact .
    I'm writing this from my way back from an topmost foundry in raipur , Employees are not paid here from past 4 months ...
    And one of my client has imported 100 crore worth steel equipment from China in September 2018.
    BJP is trying to solve this industrial issues , but very slowly ...

    DisAgree [1] Agree [5] Reply Report Abuse

  • JWL, KSA, M'lore

    Sun, Oct 13 2019

    World Bank is Anti National. Should be banned for its fake report !!!!! As per Modi Govt., BJP and their Ministers (Jokers) India's Economy is doing good and booming at present !!!
    According to them if 3 movies earned 120 crores in day means all is well with our Economy !!!
    So they are planning release more movies atleast 6 to 10 everyday!!!!!

    DisAgree [4] Agree [10] Reply Report Abuse

  • Charles D'Mello, Pangala

    Sun, Oct 13 2019

    Using bomb squad to search for bombs in the beach and picking a plastic bag full of waste from the beach of Tamil Nadu will not help Indian economy....!!!!! This kind of drama will only help to fool the people of India.

    DisAgree [2] Agree [14] Reply Report Abuse

  • Sunil Pinto, Dubai/ Udupi

    Sun, Oct 13 2019

    Let us all celebrate with cutting chai and onion pakodas with this great news...

    DisAgree [6] Agree [17] Reply Report Abuse

  • AJ, Mangaluru

    Sun, Oct 13 2019

    Demonization is the foundation stone of present economical crisis. HOWDY Finance Minister.

    DisAgree [7] Agree [20] Reply Report Abuse

  • shashi, manglore

    Sun, Oct 13 2019

    Nehru is the cuplrit.

    DisAgree [10] Agree [23] Reply Report Abuse

  • Jossey Saldanha, Atlanta

    Sun, Oct 13 2019

    I'm tired of telling 'Please vote for the Educated' ...

    DisAgree [14] Agree [42] Reply Report Abuse

  • Krishna, Udupi

    Sun, Oct 13 2019

    people are tired of telling that they voted to EDUCATED only......

    DisAgree [33] Agree [9] Reply Report Abuse

  • Jossey Saldanha, Atlanta

    Sun, Oct 13 2019

    That's why India is now Suffering ...

    DisAgree [5] Agree [20] Reply Report Abuse

  • francis lobo, Mangalore

    Sun, Oct 13 2019

    Change the World Bank President and the economist who makes this report. See how we changed our RBI governor and the economy improved. We should be happy that Pakistan is at 2.6 pct and India 6pct. But Bangladesh is 7.2pct and Nepal 6.5- both these countries. So which is better. We have beaten Pakistan

    DisAgree [7] Agree [17] Reply Report Abuse

  • Alwin, Mangalore

    Sun, Oct 13 2019

    Is this failure of Congress?or is it first time in 70 years of independence.who has lied to people of India.PM is not available for clarification

    DisAgree [4] Agree [29] Reply Report Abuse

  • Ramesh, Udupi

    Sun, Oct 13 2019

    This government has no vison, no plan, no qualified person to run the country. They are just winning the election by dividing people. Fooling people and governing are two different things.

    DisAgree [6] Agree [49] Reply Report Abuse

  • N.M, Mangalore

    Sun, Oct 13 2019

    Those who elected Modi should wake up and realize that Modi is not the solution to your social and economic woes, in fact, his poor knowledge and inefficient has made life for the normal Indian tough. Modi and BJP must be defeated in order for the common man to survive.

    DisAgree [7] Agree [35] Reply Report Abuse

  • peddu, Mangalore

    Sun, Oct 13 2019

    "The growth forecast for India for the financial year 2019-20 was even lower than that of Nepal and Bangladesh which the estimates to grow at 6.5 per cent and 7.2 per cent respectively." This statement says it all... If the entire world economy is suffering then why is it Nepal and Bangladesh economy is growing faster than our Economy

    DisAgree [3] Agree [28] Reply Report Abuse

  • Nelson, Kuwait

    Sun, Oct 13 2019

    No worries, we have considering the new Index for measuring Indian economic growth which is based on 'Bollywood box office collection', as per this Index Indian Economy is doing very well

    DisAgree [4] Agree [45] Reply Report Abuse

  • Roshan, Mangaluru

    Sun, Oct 13 2019

    The slumping growth rate is actually very bad news for all Indians. But, not sure why BJP and RSS, both celebrate it and worse still, say it is better that way.

    Even whatever wealth that India generates today, increasingly getting only into the pockets of Ambani and Adani, where the former has jumped 8 spots, to become the second. This is happening at the expense of middle class as every one knows it. Look at PMC bank, it is lakhs of middle class who had their money in this bank, now have to struggle to get their own hard earned money. Why on earth a popularly elected govt., pushes to get only a few billionaires at the expenses of mass, is a big question.

    The social science theory suggests, such things do happen to push poor, voiceless people to the slavery, who then have no voice to demand their rights. People demanding rights are always a threat to political parties and politicians. Look at Hong Kong.

    The 10th wonder of the world today is people are choosing such bleak future on their own free will. This is truly unbelievable in a digital era, but its happening.

    DisAgree [5] Agree [25] Reply Report Abuse

  • Ganesh Shetty, MANGALURU

    Sun, Oct 13 2019

    Bleak future will surely be chosen if we choose to run out of water by 2040 and play ostrichlike for our population problem.

    DisAgree [5] Agree [7] Reply Report Abuse

  • Alex, Mangalore

    Mon, Oct 14 2019

    What you mean run out of water by 2040.
    We are constructing many housing complexes (for housing cows ) with swimming pools, will the get water or moothra.

    DisAgree Agree [1] Reply Report Abuse

  • Sanjay, Hebri

    Sun, Oct 13 2019

    No problem..we need to sort issues regarding UCC, population first.....to hell with these numbers....we the majority have voted modi to control people from ☮️ ful religion...he is doing according to majority wish...

    DisAgree [48] Agree [9] Reply Report Abuse

  • Shaaju, Mangalore

    Sun, Oct 13 2019

    height of Innocence ....

    DisAgree [1] Agree [15] Reply Report Abuse

  • RonRon, Udupi

    Sun, Oct 13 2019

    No....... our Bollywood films are doing well. We are growing..... :)

    DisAgree [6] Agree [46] Reply Report Abuse

  • WILLIAM DSOUZA, Mangalore

    Sun, Oct 13 2019

    THIS ARE THE MANUPULATED WEINDOW DRESSED FIGURES, INFACT OFFICIALLY INDIAN ECONOMY IS 2.159 TRILLION , EVEN THEN WHICH MEANS INDIA IS 8TH LARGEST ECONOMY IN THE WORLD, COMPARING TO PRE 2014 THIRD LARGEST ECONOMY IN THE WORLD AFTER U.S. AND CHINA... IN FACT 2,500 INDUSTRIES SHOWN UNDER GDP, DOEST EXIST AT ALL, WHICH WILL FURTHER GO DOWN TO THE POSITION TO AN UNIMAGINABLE POSITION.

    DisAgree [3] Agree [16] Reply Report Abuse

  • Mangalurian, Mangaluru

    Sun, Oct 13 2019

    Strangely the US$5 trillion noise has gone terribly quiet...

    There has been news that Xi has been asked to invest. Let us look forward to the Great China East India Company (as in Pakistan).

    DisAgree [3] Agree [25] Reply Report Abuse

  • ramesh, kodagu

    Sun, Oct 13 2019

    Box office collection is taken to show the status of country's economy by this Govt. Tomorrow, they will announce that Adhani or Ambany's annual income will be counted as the GDP of our nation..

    ones, twice this Govt can fool the people but cant fool all the time. Feku and his team thought they can fool whole world with manipulated growth figures but they cant.

    DisAgree [7] Agree [67] Reply Report Abuse


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