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Why economists watered down India's July-Sept growth estimate to 4.2-4.7%

State Bank of India (SBI) joins global agencies such as the ADB, World Bank, OECD, RBI and the IMF in downgrading India's FY20 growth rates

Topics
GDP growth | India GDP growth | Indian Economy

Sukanya Roy  |  New Delhi 

How low could Q2 FY20 growth really be? An SBI Research Report puts the number at a dismal 4.2%.

A severe contraction in factory output has prompted observers of the to downsize their estimates. Most have put the headline number at 4.2-4.7 per cent.

September saw the manufacturing sector, which makes up 78 per cent of the index, slow down at a faster pace. in September contracted by 4.3 per cent for the second straight month, falling to an eight-year low. But this time around, service sector activity too has pulled down growth in Q2, economists said.

(SBI) joins global agencies such as the ADB, World Bank, OECD, and the IMF in downgrading India's FY20 growth rates.

According to India’s largest public sector bank, India’s growth will slow down further in the second quarter (July to August) after it hit a six-year low of 5% in the first quarter (April to June) of the current financial year. For the full fiscal year, it has given the lowest estimate so far, at 5 per cent. chief economist Sonal Varma has put the Q2 growth at 4.2 per cent, similar to what SBI has estimated.

Listen to the podcast to know why have economists dialled down growth estimate

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First Published: Wed, November 13 2019. 13:26 IST
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