Not bottomed out yet? India may grow at less than 5% in FY20, say forecasts

Reserve Bank of India has cut interest rates five times this year to boost growth, with the monetary easing complemented by fiscal measures, including $20 billion of tax cuts for companies

India’s economic growth probably hit a new low last quarter, with early forecasts showing expansion below 5%.

Economists at State Bank of India, Nomura Holdings Inc and Capital Economics Ltd lowered their growth forecasts for the quarter ended September to between 4.2% to 4.7%. The government is scheduled to publish the data on Nov 29.

Growth of 4.2% would be the lowest since authorities adopted a new base year for gross domestic product data in 2012. The economy expanded 5% in the three months through June.

“We now believe GDP growth did not bottom in the April-June period", said Sonal Varma, chief economist