World Bank lowers India’s FY 2019-20 Growth Estimate to 5%

On Wednesday, 8^th January 2020, the Washington D.C based international financial institution, World Bank has lowered India’s growth rate to 5 percent for the Financial Year (FY) 2019-2020 from the earlier projected growth rate of 6 percent, following the projection of 5 percent growth rate by both the India’s central bank- the Reserve Bank of India (RBI) in its Fifth Bi-Monthly Monetary Policy Report in December 2019 and the Government of India’s Ministry of Statistics and Programme Implementation’s First Advance Estimates of National Income report launched on Tuesday, 7^th January 2020.

The following details are published in the January report of World Bank named ‘2020 Global Economic Prospects’ in which the World Bank has mentioned that in India, from non-bank financial companies weakness in credit as the primary reason behind the projected growth rate to slow to 5 percent in the FY 2019-20. World Bank also stated that the growth rate of India will recover in the next fiscal year starting from 1^st April 2020 and projected it to 5.8 percent during it.

Month: Current Affairs - January, 2020