World Bank Lowers India Growth Rate Estimate To 5%

by GoNews Desk 2 weeks ago Views 940
World Bank Lowers India Growth Rate Estimate To 5%
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India is being delivered one jolt after another on the economic front. A fresh indication that the country’s economy is faltering has come from the World Bank. India is now lagging behind even Bangladesh in terms of development.

According to the World Bank, India’s Gross Domestic Product (GDP) growth rate for the financial year 2019-20 ending on March 31, 2020, is expected to be 5%, which is less than Bangladesh’s growth rate, which is expected to be 7.2%.

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In figures released three months ago, the World Bank had estimated the growth rate to be 6%. According to the World Bank, one reason for the growth rate remaining low in India is weakening loan transactions in non-financial companies. 

However, the growth rate is expected to improve to 5.8% in the next financial year.

According to the World Bank, this year, the growth rate is expected to remain 7.2% in Bangladesh, 5% in India, 3.3% in Sri Lanka and 3% in Pakistan.

The country’s economy is going through a lean period and according to government figures released on Tuesday, the country’s growth rate is expected to remain 5% in the financial year 2019-20. In the year 2018-19, this rate was 6.8%.

Apart from this, the investment growth rate is expected to be 0.97, which is the lowest in 15 years. The growth rate in the manufacturing sector is expected to be just 2%. Last year, this rate was 6.9%.

The agricultural growth rate is expected to be 2.8, mining to be 1.5, essential services like electricity-gas-water to be 5.4, construction sector to be 3.2 and services like business-hotel-transport to be 5.9, that is, all core sectors are in the grip of heavy recession.

If the growth rate continues to fall, it will adversely affect people’s spending power in the coming days.