The Indian economy is seen going downhill. The New Year has barely passed 10 days and three bad news emerged for the economy. These reports are a testimony that the good days of the economy are still far away.
On Thursday, 9 January, the World Bank reduced the growth rate of the Indian economy from 6.5 per cent to 5 per cent for the financial year 2019-20.
In its recent 2020 Global Economic Prospects report, the World Bank stated that credit weakness arising from non-banking financial companies (NBFCs) is one of the major reasons for the decline.
It is being said that this 5 percent growth rate is the worst estimate of the World Bank for the Indian economy in the last 11 years.
Reduced to 4.6 Percent from 5
Before the World Bank, India's largest bank, the State Bank of India, also lowered its estimate by taking the GDP growth rate of the economy. In its latest report, the research team of the State Bank had reduced the growth rate from 5 percent to 4.6 percent.
The third bad news came from the Central Statistics Office (CSO). In its report released on 7 January, the CSO said that the GDP growth of the Indian economy in the current financial year 2019-20 was 5% (which was in 2011-12). Can, whose current price will be 7.5 percent.
If compared to the beginning of last year, then the estimates of all these rating agencies and financial institutions were very positive at that time which is now very disappointing.
India Today's Data Intelligence Unit (DIU) compared previous and recent estimates of GDP growth rate and found that the GDP growth rate has fallen by more than 2 per cent in a year.
At the beginning of last year most financial institutions and agencies were optimistic that the Indian economy would be better in FY 2019-20 than in 2018-19, but after the Lok Sabha elections, the economy recorded a sharp decline and all these Estimates of agencies also declined.
Discussion on getting the economy out of crisis
Between January and April last year, all the major financial institutions had estimated that the Indian economy would be around 7 per cent, however, a few months later (between September and November), these institutions reduced the GDP growth estimate to around per cent.
After December 2019, rating agencies and global banks reduced their estimates to 5 per cent on average in view of the considerable pressure on the economy.
Due to such a continuous decline in the growth rate of GDP, the government has been stressed. Before presenting the budget, Prime Minister Narendra Modi met the big economists and experts of NITI Aayog and discussed how to get the economy out of the crisis. On this day, Finance Minister Nirmala Sitharaman also met BJP leaders and spokespersons and discussed before the budget….
