In view of the slowdown in the economy, the World Bank has also decided to reduce India's economic growth rate. In the latest report, the World Bank has lowered the growth rate estimate for the current financial year to 5 per cent, which will be an 11-year low. Earlier, the World Bank had projected a growth rate of six per cent for the current financial year (2019-20). Apart from this, on Tuesday, the Government of India also reduced the growth rate estimate to five percent.
In the report, the World Bank stated, 'The credit situation in non-banking financial companies in India remains weak. Therefore, the growth rate for the financial year ending March 31 is expected to be 5 percent. It is expected to reach 5.8 per cent with some improvement in the next financial year. The World Bank said that due to reduced consumption at the private level and lack of adequate credit arrangements, activities in India have stopped. In the same report released by the government earlier, sluggishness in manufacturing sector was cited as a major reason for the decline in growth rate. The government had said that the growth rate of manufacturing sector is expected to fall from 6.9 percent to two percent. The situation is more or less the same with the construction sector.
The World Bank has expected a slight improvement in the global growth rate. Besides, the report has projected a growth rate of 2.5 percent in 2020. The growth rate of the same large economies is expected to fall to 1.4 percent and the growth rate of emerging economies will improve to 4.1 percent. The growth rate in South Asia is expected to be 5.5 percent with a slight improvement. With this, the growth rate of Pakistan has been said to be 2.4 percent.
Also Read:
IRCTC: Know the rules for booking Tatkal tickets
Officials asked for these documents from traders to investigate GST theft case
Here is the correct method of calculating gratuity, know how much benefit is received
RBI brought video-based identification process for KYC