Tuesday, Sep 22, 2020 | Last Update : 05:33 PM IST

182nd Day Of Lockdown

Maharashtra122438091634833015 Andhra Pradesh6317495518215410 Tamil Nadu5473374919718871 Karnataka5268764233778145 Uttar Pradesh3588932895945135 Delhi2492592133045014 West Bengal2283021989834421 Odisha184122149379763 Telangana1726081419301042 Bihar169856155824870 Assam159320129130578 Kerala13863398720554 Gujarat1247671051913337 Rajasthan116881972841352 Haryana113075908841177 Madhya Pradesh108167836182007 Punjab99930754092860 Chhatisgarh8618347653680 Jharkhand7267358543626 Jammu and Kashmir65026421151024 Uttarakhand4177729000501 Goa2875322726360 Puducherry2319118065467 Tripura2227215441245 Himachal Pradesh124387836125 Chandigarh102987411123 Manipur9010683859 Arunachal Pradesh7385540813 Nagaland5544445110 Meghalaya4733252838 Sikkim2447190529 Mizoram158510120
  Business   Economy  01 May 2019  India Ratings lowers country's GDP growth projection for FY20 to 7.3 pc

India Ratings lowers country's GDP growth projection for FY20 to 7.3 pc

PTI
Published : May 1, 2019, 2:50 pm IST
Updated : May 1, 2019, 2:50 pm IST

Key reasons for downward revision are prediction of lower-than-normal monsoon for 2019 and continued agrarian distress.

India Ratings, a Fitch group company had earlier projected India's gross domestic product growth at 7.5 per cent.
 India Ratings, a Fitch group company had earlier projected India's gross domestic product growth at 7.5 per cent.

New Delhi: India Ratings and Research on Tuesday marginally lowered country's GDP growth projection for 2019-20 fiscal to 7.3 per cent mainly due to below normal monsoon prediction and loss of momentum in industrial output.

The Fitch group company had earlier projected India's gross domestic product (GDP) growth at 7.5 per cent.

 

The key reasons for the downward revision are the prediction of lower-than-normal monsoon for 2019 and continued agrarian distress, and the loss of momentum in the industrial output growth, especially manufacturing and electricity.

Besides, the slow progress on cases referred to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, was another reason cited by the company for lowering the growth forecast.

"Inability to bring the stuck capital back into the production process will have implications for investment recovery," India Ratings and Research said in a release.

Investment expenditure growth, as measured by gross fixed capital formation (GFCF), has, therefore, been downwardly revised to 9.2 per cent for 2019-20 from the earlier forecast of 10.3 per cent, it added.

 

Following the monsoon forecast, India Ratings and Research estimates agricultural gross value added growth at 2.5 per cent (earlier forecast was 3 per cent) for 2019-20 compared with the 2.7 per cent recorded for 2018-19.

The key support to the gross value added growth in 2019-20 is likely to come from services, followed by industry.

The Indian Meteorological Department (IMD) expects the monsoon to be near normal while private weather forecaster Skymet Weather Services expects the monsoon to be below normal in 2019.

According to IMD, the seasonal rainfall is likely to be 96 per cent of the Long Period Average (LPA) with a model error of plus or minus five per cent.

 

On the prices front, India Ratings and Research expects wholesale and retail inflation to remain benign at 3.4 per cent and 4 per cent in 2019-20, respectively.

Tags: india ratings, fitch, gross domestic product, gdp, monsoon, industrial output
Location: India, Delhi, New Delhi