The World Bank has slashed its growth estimate pertaining to India to 5 percent for the current fiscal from the previous projection of 6 percent.
This is in sync with the Reserve Bank of India’s and the centre’s latest projection of 5 percent growth rate for 2019-20. The multilateral agency has projected global economic growth at 2.5 percent in 2020.
“India, where weakness in credit from non-bank financial companies is expected to linger, growth is projected to slow to 5 per cent in FY 2019-20, which ends March 31 and recover to 5.8 per cent the following fiscal year,” the World Bank said in its January report of ‘2020 Global Economic Prospects’.
The centre’s Statistics Office on Tuesday unveiled the first advance estimate and reported real GDP growth at 5 percent which is an 11-year low. Nominal growth rate is forecasted at 7.5 per cent, which is the lowest in nearly four decades.
Reporting about neighbouring countries, the World Bank said that Pakistan’s growth is likely to escalate to 3 percent in the next fiscal year after going out at 2.4 percent in FY20, which ends on June 30.