Growth projection of India Ratings and Research

Question: What is India’s GDP growth projection for 2019-20 as per India Ratings and Research?
(a) 7.3%
(b) 7.7%
(c) 7.0%
(d) 6.9%
Answer: (a)
Related facts:

  • On 30 April 2019, India Ratings and Research marginally lowered country’s GDP growth projection for fiscal 2019-20 to 7.3%.
  • This is due to below normal monsoon prediction and loss of momentum in industrial output.
  • The ‘Fitch’ had earlier projected India’s gross domestic product growth at 7.5%.
  • Investment expenditure growth, as measured by growth fixed capital formation (GFCF), has been downwardly revised to 9.2% for 2019-20 from the earlier forecast of 10.3%, according to India Ratings and Research.
  • Following the monsoon forecast, India Ratings and Research estimates agricultural gross value added growth at 2.5% (earlier forecast was 3%) for 2019-20 compared with the 2.7% recorded for 2018-19.
  • The key support to the gross value added growth in 2019-20 is likely to come from services, followed by industry.
  • On the prices front, India ratings and research expects wholesale and retail inflation to remain benign at 3.4% and 4% in 2019-20, respectively.

Links:
https://economictimes.indiatimes.com/news/economy/indicators/retail-inflation-inches-up-to-2-92-in-april/articleshow/69308936.cms?from=mdr
https://economictimes.indiatimes.com/markets/stocks/news/india-ratings-lowers-gdp-growth-projection-for-fy20-to-7-3/articleshow/69115194.cms?from=mdr