India's GDP likely to grow 5% this fiscal: SBI report

An SBI reserach report on Tuesday sharply cut the country's GDP growth forecast to 5 per cent for FY 2019-20 from the earlier projection of 6.1 per cent.

The second quarter GDP growth rate is likely to slip to 4.2 per cent on account of low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure, according to Ecowrap -- the report from the Economic Research Department of State Bank of India (SBI).

The report, however, said the economic growth rate will pick up pace in 2020-21 to 6.2 per cent.

To propel economic growth, it said, the Reserve Bank of India (RBI) may go for "larger rate cuts" in December monetary policy review.

Last month, while reducing the key policy rate (repo) by 25 basis points for the fifth time in a row, the RBI had also reduced its growth forecast to 6.1 per cent for 2019-20 from 6.9 per cent.

Meanwhile, the SBI research report said, "We are revising our GDP forecast for 2019-20 to 5 per cent from 6.1 per cent earlier."
"India is also significantly lower in Economic Uncertainty Index when compared globally!