NEW DELHI: Various agencies are expressing their projections on the growth rate of the country's economy which is in recession. Another institution has been added to the link. According to its estimate, the country's GDP is projected to be 6.7 % in the current financial year, as it was 7.3% in the earlier estimate.
Weak consumption, monsoon, and a slowdown in manufacturing growth have been attributed to the decline in GDP. The figure comes at a time when the Moody's Investors Service has recently lowered its GDP growth projection for the 2019 calendar year from the earlier estimate of 6.8 % to 6.2 %.
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"We have revised the country's GDP growth rate to 6.7 % for FY20, compared to 7.3 % in the previous estimate," India's Ratings and Research said in a report. The report predicts that the financial year 2020 will be the third consecutive year in which the growth rate will remain slow due to fall in demand, delay in monsoon and fall in manufacturing as well as non-addressing of cases under the Insolvency Code Act within the stipulated time frame.
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The rising global trade tensions will also have an adverse impact on exports, according to the report. The report says that even on a quarterly basis, the first quarter of FY20 has been the fifth consecutive year in which the GDP growth rate has been declining and has been 5.7 %. The rating agency believes that GDP growth will rise to 7.4 % in the second half of fiscal 2020.