India can get a positive result on the economic front in 2019-20 According to the World Bank, due to improving investment and exports in India, the GDP rate is estimated at 7.5 percent. The World Bank report on South Asia states that the first three quarterly figures show that growth has been spectacular. Industrial growth has risen to 7.9% and this has reduced the shortfall in the service sector.
Similarly, the agricultural sector has been growing at 4%. According to the report, demand will increase this time. In the report, inflation has been talked about. According to the report, besides the strong growth, the improvement in the timing of food prices can go up to 4 percent. It has been said in the report that in July 2018, the rate of decline in food prices and with the softening of the price of oil, the rate of exchange of rupee has decreased rapidly.
World Bank has said that gross inflation was 2.6 percent in February 2019 and it was 3.5 percent in the financial year 2018-19. This is less than the Reserve Bank's target of four percent. This is the reason why the central bank has cut the repo rate. Let us explain to you that the Reserve Bank has cut 0.25 basis points in repo rate for the second consecutive time.
At the same time, the current account deficit and fiscal deficit are both likely to be soft. According to the report, the fiscal deficit, including the integrated (states) on the internal market, is expected to fall to 6.2 to 6.0 percent of GDP in 2019-20 and 2020-21 respectively. The deficit of the center can remain at 3.4 level of GDP in 2019-20.
