 "Eric Fishwick, chief economist at CLSA & Anthony Nafte, senior economist at CLSA")
The gloom surrounding the Indian economy is likely to get worse in the months ahead. If analysts at CLSA are believed, the growth in real gross domestic product (GDP) for financial year 2019-2020 (FY20) could slip to 5 per cent with risks to the downside. Their worst-case scenario is 50 basis point (bps) lower than this projection at 4.5 per cent.
“India is in the middle of a severe credit contraction that started with the liquidity squeeze triggered by the crisis in the non-bank finance companies (NBFCs), which has now spread to deposit-taking companies as well. India is growing below
