India's GDP Growth At 4.7% In FY19 Third Quarter: Govt Data
The Central government is being dealt repeated blows on the economic front.
On Wednesday, India’s largest public sector bank, the State Bank of India (SBI), in its Ecowrap research report, revised upwards FY20 GDP at 4.7% from 4.6% with a downward revision in FY19, thus compounding the difficulties of the government. The SBI report also said that the GDP growth rate will remain flat at 4.5 per cent similar to as in Q3: FY20. Apart from this, expressing concern over the fast-spreading coronavirus, the SBI said that it could adversely impact the Indian economy. The Sensex also registered a fall of 1,500 points on Friday due to the tumult caused by this virus. The nightmare of the Indian economy is far from over. According to the SBI, the growth rate in the third quarter of the financial year 2020 will be 4.5% and the GDP for the current deficit will reach only 4.7%. The SBI had estimated the growth rate in the first quarter of the year 2019 to be 8%, which has now fallen to 4.5%. For this, the SBI held responsible shrinking economies across the world, increasing tensions among several countries and falling demand. Apart from this, the report also expresses concern over the coronavirus, which has now spread to 38 countries. According to the report, China, worst-affected by this virus, could suffer losses of up to $100 billion, which could directly affect India. The report also says that in 2003, losses of $40 billion had been caused by the SARS virus and 8,096 people had been impacted by it. But 80,234 people (10 times the number) have been affected by the coronavirus outbreak in 2019 and the damage caused by this disease is still being evaluated. The report also states that economic activities are slackening due to the campaigns, launched on a war footing, against the coronavirus in China, which will directly affect exports from there. India also imports several items of everyday use from China and given this, their prices could increase. While 93% imported umbrellas and canes are from China, 72% toys are also from there. Apart from this, 71% leather goods, 61% laminated textile fabric, 59% musical equipment and 50% footwear is also imported from China. It is evident that given all these factors, the embattled Indian economy could take a long time to recover.
The @TheOfficialSBI estimates a growth rate of 4.7% in FY 2020. In addition, #SBI expressed concern over the fast-spreading #coronavirus, saying it could have an adverse impact on the #Indianeconomy@RaGa_reports— GoNewsIndia (@GoNews_India) February 28, 2020
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