International agency OECD said in its report on Thursday that India’s Gross domestic product (GDP) growth rate for the financial year 2019-20 will be 5.8 percent. The Organization for Economic Co-operation and Development (OECD) said that the decrease in growth has started to occur since mid-2018, reflecting a sharp decrease in private consumption.
The official GDP was recently projected to be 4.5 percent for the second quarter and is the first international growth rate estimate since then.
Reserve Bank also Reduced the Estimate
Significantly, on Thursday itself, the Reserve Bank of India has said in its estimate that the growth rate of the Indian economy can be just 5 percent in this financial year.
The Organization for Economic Cooperation and Development (OECD) is an inter-governmental economic organization, consisting of 36 countries. It was established in 1961 with the objective of encouraging economic progress and world trade. According to the survey, after several years of excellent growth, after falling GDP rate to 5.8 percent in 2019, it will catch up to 6.2 percent in 2020 and 6.4 percent in 2021.
The OECD said in its survey, “Restoring growth at a high level is necessary for the creation of jobs and the need for accelerating the pace of structural reforms to accelerate investment and exports. ‘
The report said that removing other infrastructural bottlenecks by modernizing ports and constructing roads will be important to increase India’s competitiveness.
The OECD said, ‘India will be the biggest beneficiary of multilateral cuts in service trade restrictions. Even without a multilateral agreement, there will be a positive impact of moving forward on inspection of rules.
The OECD Economic Survey: India Report 2019 issue predicts that India’s GDP will achieve 5.8 percent growth for the financial year 2019-20. The decrease in growth has started from mid-2018, which shows a sharp decrease in private consumption.