Mumbai, Jul 24 (DIN NEWS)<\/b> The economy will not be able to achieve the official forecast of 7 percent growth in FY20, making it a second consecutive year of sub-7 percent expansion, says a report.<\/p>\n
Singaporean lender DBS estimates FY20 growth to stay at 6.8 percent, the same as FY19. The economic survey earlier this month had pegged growth to rise to 7 percent.<\/p>\n
“FY20 growth is likely to be sub-7 percent for a second straight year,” its economists led by Radhika Rao, said in a note Wednesday.<\/p>\n
The report said growth will “soften” in the first half of the fiscal and rise in the second half on base effect.<\/p>\n
Alluding to the Reserve Bank’s three successive rate cuts, the note said lower rates will also help prop up growth number in the second half.<\/p>\n
It can be noted that the RBI has cut its key rates by a cumulative 0.75 percent so far in 2019 and has also shifted its stance to accommodative which will result in at least a 0.25 percent more reduction, as per governor Shaktikanta Das.<\/p>\n
The report expects the focus on fiscal consolidation and low inflation will help the monetary policy to be more growth-oriented.<\/p>\n
Listing out its reasons for slower growth, DBS said rural income and consumption will be pressured by the persistent negative terms of trade in the agricultural sector and a poor monsoon and said the income transfer scheme will help demand only at the margins.<\/p>\n
FY19 growth was supported by public sector participation and the same will continue this year as well, especially as the election-related uncertainties ease up.<\/p>\n\n","protected":false},"excerpt":{"rendered":"
Mumbai, Jul 24 (DIN NEWS) The economy will not be able to achieve the official forecast of 7 percent growth in FY20, making it a second consecutive year of sub-7 percent expansion, says a report. Singaporean lender DBS estimates FY20 growth to stay at 6.8 percent, the same as FY19. The economic survey earlier this month had pegged growth to rise to 7 percent. “FY20 growth is likely to be sub-7 percent for a second straight year,” its economists led by Radhika Rao, said in a note Wednesday. The report…<\/p>\n","protected":false},"author":1,"featured_media":23375,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,4],"tags":[],"_links":{"self":[{"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/posts\/23374"}],"collection":[{"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dinnews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23374"}],"version-history":[{"count":1,"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/posts\/23374\/revisions"}],"predecessor-version":[{"id":23376,"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/posts\/23374\/revisions\/23376"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dinnews.in\/index.php?rest_route=\/wp\/v2\/media\/23375"}],"wp:attachment":[{"href":"https:\/\/dinnews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dinnews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dinnews.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}