All is not well with the Indian economy, say analysts; remain cautious

Growth rates in India have been grinding lower over the past few quarters, with the Reserve Bank of India (RBI), too, now sitting up and taking note of the problem. While reviewing the monetary policy on Thursday, the central bank lowered the forecast to 5 per cent for financial year 2019–20 (FY20), down from 6.1 per cent in the October 2019 policy review and 2 per cent lower than the June 2019 projection.

Recently, analysts at CLSA too had forecast a similar growth rate (of 5 per cent) for the Indian economy in FY20 with risks to the downside. Their