Monday, Sep 21, 2020 | Last Update : 01:15 PM IST

180th Day Of Lockdown

Maharashtra118801585793332216 Andhra Pradesh6177765307115302 Tamil Nadu5364774812738751 Karnataka5113454048417922 Uttar Pradesh3362942632884771 Delhi2347011981034877 West Bengal2155801870614183 Telangana1713061397001033 Odisha167161133466722 Bihar164224149722855 Assam150349121610528 Kerala12221687341490 Gujarat119088999083271 Rajasthan109088906851293 Haryana103773816901069 Madhya Pradesh97906743981877 Punjab90032658182646 Chhatisgarh7777541111628 Jharkhand6710052807590 Jammu and Kashmir5971138521951 Uttarakhand3713924810460 Goa2678320844327 Puducherry2142816253431 Tripura2069612956222 Himachal Pradesh11190691997 Chandigarh92566062106 Manipur8430653951 Arunachal Pradesh6851496713 Nagaland5306407910 Meghalaya4356234232 Sikkim2119178923 Mizoram15069490
  Business   Economy  07 Aug 2019  RBI lowers GDP growth forecast to 6.9 pc for FY'20 on demand, investment slowdown

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)