Recently, the government said that GDP growth is expected to be only 5 percent in the current financial year (2019-20). However, economists at State Bank of India have called this estimate optimistic.
Economists of SBI say that the GDP growth rate may be lower than the government's estimate of 4.6 percent. At the same time, the growth rate of the economy at the current market price can be 7.5 percent, which will be its 42-year low. SBI's note says that we are reducing our growth rate estimate to 4.6 percent for the current financial year.
Apart from SBI, Japanese brokerage company Nomura has said that the growth rate will be 4.7 percent in the current financial year and will go up to 5.7 percent in the next financial year. Domestic brokerage company Kotak Securities has also projected a growth rate of 4.7 per cent in the current financial year. However, the private sector Yes Bank has said that we are keeping our estimate of growth rate of 4.9 percent in the current financial year.
Government Expressed the Estimate of 5 Percent
Recently, the Central Statistics Office (CSO) released estimates for GDP growth in the current financial year. The CSO estimates that GDP growth could be 5 percent in the current financial year 2019-20. If this happens, it will be the lowest after 2008-09. This is to say that it will be a low level of about 11 years. Prior to CSO, RBI also reduced annual GDP growth estimate from 6.1 per cent to 5 per cent.
