New Delhi: There is a heated debate about the economic slowdown in the country these days. While the opposition is attacking the government on this issue, the government is denying any such recession. Recently rating agency Moody's has also lowered India's economic growth forecast. Now the World Bank has also joined this episode.
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The World Bank has lowered the country's economic growth forecast for the current financial year. The World Bank on Sunday reduced it to six percent. Whereas, it was 6.9 percent in the financial year 2018-19. However, the World Bank said that inflation is favorable and if the monetary stance remains soft then the growth rate may improve.
According to the World Bank, if the growth rate continues to improve, it could rise to 6.9 percent in 2021 and 7.2 percent in 2022. A joint annual meeting of the IMF and the World Bank is yet to be held. Before that, India's economic growth rate has been projected to decline for the second consecutive year. The growth rate in the financial year 2018-19 was 6.8 percent, while it was 7.2 percent in the financial year 2017-18.
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The growth in industrial production increased due to a spurt in manufacturing and construction activities, and rose to 6.9 percent, while the growth rate in the agriculture and services sector was 2.9 and 7.5 percent respectively. According to the report, the slowdown in the economy has been attributed to a decline in private consumption in terms of demand in the first quarter of 2019-20 and weak growth in both industry and services.
