India to witness economic slowdown: Reports

The business activity expectations in India have fallen to their lowest reading since the survey started in 2009, as per the report of IHS Markit, a London-based research firm.

The companies in the country are worried about a slowdown in the economy, the public policies, the weak sale, the depreciation in rupee, shortage of skilled labor along with the water shortage. As per the reports, only a net of 15 percent of the private sector companies that were surveyed in the month of June sees the output growth in the coming year.

According to IIP (Index of Industrial Production) data released by the government, India’s industrial output has slowed to 3.1 percent in May, weighed down by muted growth in the mining and manufacturing sectors.

As per the reports, Auto sales have fallen by 21 percent in May, as compared to that of 2018. Exports fell to a 41-month low of USD 25 billion in June 2019. Investment in the new projects has dropped to a 15-year low in the June quarter, as Indian companies, private and public, announced new projects worth Rs 43,400 crore in the June 2019 quarter, 87 percent lower than the year-ago period.

The Asian Development Bank (ADB) has also revised the inflation outlook for India downwards by 0.2 percentage points to 4.1 percent in FY2019 and 4.4 percent in FY20. The reduction has been made in the supplement to Asian Development Outlook (ADO) considering a strengthening rupee and a lower GDP growth forecast, as per the reports in Business Today.

The ADB has lowered India’s Gross Domestic Products (GDP) growth forecast for the ongoing financial year to 7 percent over concerns over a shortfall in fiscal outturn in 2018.

However, even with the decline in the forecast, India remains the fastest-growing country in the robust South Asia region, the development bank stated.

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