Monday, May 25, 2020 | Last Update : 06:05 PM IST

62nd Day Of Lockdown

Maharashtra50231146001635 Tamil Nadu162778324112 Gujarat140636412858 Delhi134186540261 Rajasthan70283848163 Madhya Pradesh66653408290 Uttar Pradesh62683538161 West Bengal36671339272 Andhra Pradesh2780184156 Bihar257470211 Karnataka208965442 Punjab2060189840 Telangana1854109253 Jammu and Kashmir162180921 Odisha13365507 Haryana118476516 Kerala8485206 Assam393584 Jharkhand3701484 Uttarakhand317583 Chandigarh2621794 Chhatisgarh252640 Himachal Pradesh203594 Tripura1941650 Goa66160 Puducherry41120 Manipur3220 Meghalaya14121 Arunachal Pradesh210 Mizoram110 Sikkim100

RBI lowers GDP growth forecast to 6.9 pc for FY'20 on demand, investment slowdown

PTI
Published : Aug 7, 2019, 1:36 pm IST
Updated : Aug 7, 2019, 1:36 pm IST

The RBI said various high frequency indicators suggest weakening of both domestic and external demand conditions.

Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent, said an RBI stament. (Representational Image)
 Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent, said an RBI stament. (Representational Image)

Mumbai: The Reserve Bank on Wednesday marginally lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent forecast in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand.

The RBI has cut the repo rate by an unusual 0.35 percentage points to 5.40 per cent in its third monetary policy committee review for the current financial year.

Repo rate is the rate at which the RBI lends to banks.

RBI Governor Shaktikanta Das said the central bank has lowered the GDP growth forecast owing to demand and investment slowdown, which is causing dampening effect on the growth.

"Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent - in the range of 5.8-6.6 per cent for firs half of 2019-20 and 7.3-7.5 per cent for the second half - with risks somewhat tilted to the downside," RBI said in the monetary policy statement.

Das said perhaps at this point of time there is cyclical slowdown and not a deep structural slowdown.

"Nevertheless, there is a need for structural reforms. We are still working on it," Das said.

The GDP growth for the first quarter of the next fiscal beginning April 2020 has been projected at 7.4 per cent.

The RBI said various high frequency indicators suggest weakening of both domestic and external demand conditions.

The Business Expectations Index of the RBI's industrial outlook survey shows muted expansion in demand conditions in second quarter, although a decline in input costs augurs well for growth, RBI said.

"The impact of monetary policy easing since February 2019 is also expected to support economic activity, going forward. Moreover, base effects will turn favourable in H2:2019-20," it added.

Tags: reserve bank of india, rbi, monetary policy committee, shaktikanta das, gdp growth, investment
Location: India, Maharashtra, Mumbai (Bombay)
ADVERTISEMENT
ADVERTISEMENT