World Bank another blow to India : projected India’s growth rate down to 6%

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In the midst of the economic downturn, India has received another setback from the World Bank. The World Bank has now lowered India’s growth rate forecast. The World Bank has reduced India’s growth rate to 6 percent. However, in the year 2018-19, India’s growth rate was 6.9%. However, in the latest edition of South Asia’s Economic Focus, the World Bank has also said that India could recover 6.9 percent of its growth rate by 2021.

India has been falling behind for two consecutive years

The World Bank has said that for the second year in a row, the economic growth rate is slowing down. It was 7.2% in 2017-18, down from 6.8% in 2018-19. However, with the increase in manufacturing and construction, industrial output growth has risen to 6.9% while growth in agriculture and service sectors was 2.9% and 7.5%.

Moody’s Reduces GDP Estimates

Credit rating agency Moody’s has once again underestimated India’s GDP growth. Moody’s estimates that India’s GDP growth for the financial year 2019-20 will be 5.8%. Earlier, Moody’s had an estimated GDP growth of 6.2%. Because of this, Moody’s has reduced GDP growth estimates by 0.4%.

Along with that, Moody’s has given a serious warning to the Indian economy. Moody’s said that if the economy continues to sluggish, the government’s attempt to reduce its fiscal deficit will be shaky. At the same time, the loan burden will increase.

The RBI also gave a jerk

Like Moody’s, RBI, the country’s central bank, has reduced its growth rate forecast for the current financial year. According to RBI estimates, GDP growth this fiscal is likely to remain at the rate of 6.1%. Earlier, the RBI had projected GDP growth at 6.9%. That is, within a few months the RBI reduced the GDP growth projections by 0.8%.