Ind-Ra cuts GDP growth forecast in FY20 to 6.7%

  1. India Ratings and Research has revised downwards its projection of the country’s GDP growth in financial year 2019-20 to 6.7% from an earlier estimate of 7.3%
  2. The reasons cited for lowering the growth projection are a) a slowdown in consumption demand; b) delayed and uneven progress of monsoon so far; c) decline in manufacturing growth; d) inability of Insolvency and Bankruptcy Code to resolve cases in a time-bound manner, and e) rising global trade tension adversely impacting exports.
  3. Recently, the Moody’s Investors Service has also cut the GDP growth forecast for the current financial year to 6.2% from the previous estimation of 6.8%.