ANI
10 Oct 2019, 18:07 GMT+10
New Delhi [India], Oct 10 (ANI): India Ratings and Research (Ind-Ra) on Thursday revised its forecast of India's gross domestic product (GDP) growth in current financial year downward to 6.1 per cent following the Central Statistical Organisation (CSO) estimating Q1 growth to be 5 per cent, much lower than Ind-Ra's estimate of 5.7 per cent.
This is Ind-Ra's second downward revision. The agency revised its GDP growth estimate to 6.7 per cent from its earlier forecast of 7.3 per cent as recently as in August.
Although Ind-Ra had cited a slowdown in both urban and rural consumption demand growth as one of the key reasons for the downward revision of the GDP in its August 2019 forecast, the CSO's first-quarter estimate shows that the slowdown has been much sharper than Ind-Ra's expectation.
It crumbled to 3.1 per cent in Q1 FY20 as compared to 7.2 per cent a quarter ago and 7.3 per cent a year ago. The GDP growth in H1 FY20 is likely to be 5.2 per cent. Ind-Ra expects it to recover to 6.9 per cent in H2 FY20, mainly on account of the base effect.
The slowdown in consumption demand is reflected in the Reserve Bank of India's consumer confidence index as well which declined to 89.4 in September 2019 (July 2019: 95.7).
The other key indicators that have worsened lately are aggregate capacity utilisation declining to 73.6 per cent, banking credit to commercial sector turning negative at Rs 1.28 lakh crore and non-banking credit to commercial sector falling to Rs 2.19 lakh crore. (ANI)Get a daily dose of Sri Lanka Source news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Sri Lanka Source.
More InformationSAN FRANCISCO, California: Grammarly is doubling down on AI-powered productivity tools with the acquisition of Superhuman, a sleek...
NEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...