NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / #EconomicSlowdown: World Bank cuts India's growth rate projection to 6%
    Next Article
    #EconomicSlowdown: World Bank cuts India's growth rate projection to 6%

    #EconomicSlowdown: World Bank cuts India's growth rate projection to 6%

    By Shalini Ojha
    Oct 13, 2019
    12:23 pm

    What's the story

    The country's "well-learned" union ministers may want you to believe that there is no economic slowdown whatsoever, but data points otherwise.

    After the chief of the International Monetary Fund (IMF), said that the effect of the global slowdown is more "pronounced" in India, the World Bank cut India's growth rate to 6%.

    The growth rate was estimated at 6.9% in 2018-2019.

    Expectations

    GDP growth rate will reach 6.9% in 2021: World Bank

    In its latest edition of South Asia Economic Focus, the top bank said on Sunday that not all things are gloomy with India.

    The GDP growth rate is expected to reach 6.9% in 2021, and 7.2% in 2022. The bank made these remarks assuming monetary stance will remain accommodative.

    India's GDP growth rate slipped to a seven-year low in the April-June quarter to 5%.

    Rates

    Growth rate dipped for the second consecutive year

    Obviously, the bank noted that India's growth rate decelerated for the second consecutive year. It was recorded at 7.2% in 2017-18, and at 6.8% in 2018-19.

    The only good news came from industrial output growth which jumped to 6.9%, courtesy rise in manufacturing and construction activities.

    But growth in agriculture and the services sector moderated to 2.9 and 7.5%, respectively.

    Inflation

    Inflation rate and RBI's policies were also mentioned

    Further, the report underscored that the economy witnessed a slump in first-quarter of 2019-20. There was a decline in "private consumption on the demand side" and on the supply side, growth weakened in both industry and services.

    World Bank noted that since headline inflation averaged at 3.4% in 2018-19, below Reserve Bank of India's range target of 2019-20, the central bank eased monetary policies.

    Poverty

    Poverty reduced, albeit at a slower pace: World Bank

    The report added that debt of government remained "stable and sustainable - being largely domestic and long term-at around 67% of GDP."

    Though there has been a reduction in poverty, the pace slowed down.

    "Between 2011-12 and 2015-16, the poverty rate declined from 21.6 to 13.4% (USD 1.90 PPP/day)," the report added.

    World Bank said while rupee lost ground against the dollar, it appreciated by March 2019.

    Effects

    Demonetization and GST affected poorest households: World Bank

    Risk at poorest households increased, the World Bank added, crediting it to measures like GST and demonetization, coupled with slow growth in the rural economy and a rise in unemployment in urban areas.

    As far as consumption is concerned, it will remain depressed, the bank said. This will happen due to "slow growth in rural income, domestic demand, and credit from non-banking financial companies (NBFCs)," it added.

    Quote

    "Trade wars will ensure exports growth remains modest"

    "Growth is expected to gradually recover to 6.9% in 2020-21 and 7.2% in 2021-22 as the cycle bottoms-out, rural demand benefits from effects of income support schemes, investment responds to tax incentives and credit growth resumes. However, exports growth is expected to remain modest," the report added.

    Challenge

    India has to understand why investment is weakened

    For India, the main challenge is to identify why private consumption has softened and why investment has weakened.

    "This will require restoring the health of the financial sector through reforms of public sector banks. It will also require efforts to contain fiscal slippages, as higher-than-expected public borrowings could put upward pressure on interest rates and potentially crowd-out the private sector," the bank said.

    Measures

    Turning blind eye to economy, law minister made nonsensical remark

    While mostly all top bodies don't have nice things to say about the Indian economy, the government led by BJP is in denial.

    Yesterday, Union Law Minister Ravi Shankar Prasad stoked a controversy by saying that there is nothing wrong with the economy as three movies earned more than Rs. 100 crore.

    His words proved our ministers know well how to dodge the problem.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    India
    Reserve Bank Of India (RBI)
    World Bank
    International Monetary Fund

    Latest

    Anurag Kashyap reveals how Vijay Sethupathi convinced him for 'Maharaja' Anurag Kashyap
    Guess Nayanthara's fee for upcoming film with Chiranjeevi  Chiranjeevi
    How Barcelona dominated Real Madrid in 2024-25 season across competitions? Real Madrid
    Arsenal stage stunning comeback to draw 2-2 against Liverpool: Stats Trent Alexander-Arnold

    India

    CFMoto 250SR fully-faired motorcycle revealed: Details here China
    BMW launches M5 Competition in India at Rs. 1.55 crore BMW
    Motorola One Macro to launch in India tomorrow Samsung Galaxy
    2020 Triumph Street Triple RS breaks cover: Details here GoPro

    Reserve Bank Of India (RBI)

    IAS topper Shah Faesal quits to protest against Kashmir killings Central Bureau Of Investigation (CBI)
    PM Narendra Modi's war-cry for 2019: This Chowkidaar won't stop Narendra Modi
    Lenders may bring out resolution plan for Jet Airways: SBI Jet Airways
    May need more currency as GDP size increasing: RBI official Business

    World Bank

    Bollywood celebs' definition of poor is both funny and depressing Bollywood
    World Bank denies Sharif laundered $4.9 billion to India Pakistan News
    US Supreme Court to hear dispute over Gujarat power plant Gujarat
    India, Pakistan spar over Indus Waters Treaty at World Bank India

    International Monetary Fund

    India's growth momentum must continue despite elections, says IMF India
    Death penalty for child rapists: Modi Cabinet approves Ordinance Supreme Court Of India
    World debt hits record $164 trillion: Should we be worried? United States of America
    India's GDP expected to reach $5 trillion by 2025 India
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025