Crisil, a global analytical company providing ratings, research, and risk and policy advisory services, has sharply cut India’s Gross domestic product (GDP) growth forecast to 5.1% for the current financial year (FY20) from an earlier estimate of 6.3%. The move comes within days of the official data showing a further slip in the second quarter growth to 4.5%. This leaves the first half (April-September) growth at 4.75%, a multi-year low.
The agency mentioned that key short-term indicators like industrial production, merchandise exports, bank credit offtake, tax mop-ups, freight movement, and electricity production, all point to a weakening growth momentum.
However, the agency is expecting a mild pick-up in growth in the second half of current financial year. Growth in the second half of 2019-20 will go up to 5.5%, up from the 4.75% in the first half.