5% growth in India’s GDP likely this fiscal

A report from the Economic Research Department of State Bank of India (SBI), which was launched yesterday trimmed the country’s GDP growth forecast to 5% for FY 2019-20 from the earlier projection of 6%. According to the findings, the second quarter GDP growth rate is likely to slip to 4.2%. The report attributes this to low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure. In order to stimulate growth, the report stipulated that RBI may opt for “larger rate cuts” in December monetary policy review. It also stated that the economic growth rate will plausibly pick up pace in 2020-21 to 6.2%.