After IMF, it is CRISIL's 'Uphill trek', slashing India's GDP growth estimation by 20 basis points for 2019
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New Delhi, August 02: While on the path of USD 5 trillion economy, India eventually is facing declined growth affairs aligning to the Union Budget modules presented by the Finance Minister on July 5 this year. Moving ahead, the credit rating agency CRISIL has again slashed its gross domestic product growth forecast by 20 basis points to 6.9 per cent for this fiscal.
The reason behind this estimation, as the report read was however slated to be weak monsoon and slowing global growth. “Sluggish GDP data for the first quarter was also taken into account for lowering India's growth estimates”, it noted further.
The development came days after the International Monetary Fund cut India's growth by 30 basis points for the year 2019 and 2020 to 7 per cent and 7.2 per cent, respectively, due to weaker than expected outlook for domestic demand.
The global analytical firm, in its latest report on the outlook for India in the financial year 2019 titled 'Uphill trek', said that the slowdown would be pronounced in the first half, while the second half was expected to find support from expected monetary easing, consumption and statistical low-base effect.
The report also noted that India's GDP had grown at an impressive 8.2 per cent in fiscal 2017, the fastest in a decade. However, it was derailed by disruptions stemming from policy initiatives and reforms and rising global uncertainty including from trade disputes.
Meanwhile, it noted that most consumption segments were to pull India Inc's revenue growth to single digits, adding weak prices of commodities such as steel to exacerbate the pain. "On the corporate side, revenue growth is set to grow at a slower 8 per cent, reversing the trend of double digit growth in the past two fiscals”, the statement signed off.