World Bank cuts India's growth projection to 6%
Under Modi's govt, India's economic growth decelerated for the second consecutive year
PHOTO: Reuters
Noting that India's economic growth rate has decelerated for the second consecutive year, the World Bank (WB) has projected it will fall to six per cent following a broad-based deceleration in the initial quarters of this fiscal year, Indian media outlets reported on Sunday.
The report, which was released ahead of the annual meeting of the WB with the International Monetary Fund (IMF) noted that India's growth rate stood at 6.8 per cent in the fiscal year 2018-19 - falling from 7.2 per cent in 2017-18.
The report said India is expected to gradually recover to 6.9 per cent in 2021 and 7.2 per cent in 2022, assuming that the monetary stance would remain accommodative due to benign price dynamics.
India's industrial output growth increased to 6.9 per cent due to an increase in manufacturing and construction. The growth in the agriculture and services sector, however, was 2.9 per cent and 7.5 per cent respectively.
Under Modi's government, India's economy faces further slowdown
In the first quarter of 2019-20, the economy experienced a sharp decline in private consumption, with a weak growth rate in both industry and services.
The report also noted that in the previous year, the amount deficit was 1.8 per cent - widening to 2.1 per cent of the gross domestic product (GDP) in 2018-19.
It also noted that the rupee initially depreciated but picked up by about seven per cent by March 2019.
Poverty
According to the World Bank report, poverty has continued to decline. The poverty rate reduced from 21.6 per cent to 13.4 per cent between the years 2011-12 and 2015-16.
The report also noted that people in the poorest households are at a heightened risk for poverty - due to GST, demonetisation, stress and unemployment.
It also said that consumption was likely to remain low due to slow growth in rural income, domestic demand and credit from non-banking financial companies.
The report, which was released ahead of the annual meeting of the WB with the International Monetary Fund (IMF) noted that India's growth rate stood at 6.8 per cent in the fiscal year 2018-19 - falling from 7.2 per cent in 2017-18.
The report said India is expected to gradually recover to 6.9 per cent in 2021 and 7.2 per cent in 2022, assuming that the monetary stance would remain accommodative due to benign price dynamics.
India's industrial output growth increased to 6.9 per cent due to an increase in manufacturing and construction. The growth in the agriculture and services sector, however, was 2.9 per cent and 7.5 per cent respectively.
Under Modi's government, India's economy faces further slowdown
In the first quarter of 2019-20, the economy experienced a sharp decline in private consumption, with a weak growth rate in both industry and services.
The report also noted that in the previous year, the amount deficit was 1.8 per cent - widening to 2.1 per cent of the gross domestic product (GDP) in 2018-19.
It also noted that the rupee initially depreciated but picked up by about seven per cent by March 2019.
Poverty
According to the World Bank report, poverty has continued to decline. The poverty rate reduced from 21.6 per cent to 13.4 per cent between the years 2011-12 and 2015-16.
The report also noted that people in the poorest households are at a heightened risk for poverty - due to GST, demonetisation, stress and unemployment.
It also said that consumption was likely to remain low due to slow growth in rural income, domestic demand and credit from non-banking financial companies.