INSUBCONTINENT EXCLUSIVE:
Some economists believe that there may be limited room left for authorities to stimulate growth
The
government will at 5:30 pm today release data on GDP or gross domestic product for the second quarter of current financial year
Many economists expect India's GDP growth rate to decline further to below 5 per cent amid consumption slowdown and loss of thousands of
Economic growth had come in at 5 per cent - the lowest rate of expansion recorded in more than six years - in the April-June period
The government has announced a slew of measures in the past months to spur investments and revive growth, including withdrawal of higher
taxes on foreign investors, reduction in corporate taxes, a mega merger of state-run banks, a special window for the real estate sector and
a massive disinvestment plan
Many economists and financial institutions have lowered their growth projections for the September quarter as well as the year
ending March 2020.In a poll conducted by news agency Reuters, economists expect GDP growth to come in at 4.7 per cent in July-September,
down from 5.0 per cent in the previous quarter and 7 per cent in the three-month period till September 30, 2018.If that prediction comes
true, it would mean the slowest pace of economic expansion for the country since the quarter ended March 2013
Growth had then stood at 4.3 per cent, official data shows.A crisis in the country's financial sector marred by piles of bad assets and a
economic growth.The government has in the recent past acknowledged the growth slowdown, but exuded confidence that the economy will pick up
soon and dismissed the possibility of recession.Finance Minister Nirmala Sitharaman has maintained that the fundamentals remain strong and
said she's not closing the door on additional steps to support the economy.India lost its position as the world's fastest-growing major
The government has set a target of making the country a $5-trillion economy by 2024.However, some economists believe that there may be
limited room left for authorities to stimulate growth.The Reserve Bank of India (RBI) has so far this year reduced the repo rate - which is
the key interest rate at which it lends short-term funds to commercial banks - by 1.35 percentage point to 5.15 per cent.Consumer inflation
- tracked by the RBI primarily for formulating its monetary policy - stood at 4.62 per cent last month, breaching the central bank's
medium-term target of 4 per cent for the first time in 15 months amid rising vegetable prices
Still, few economists expect the RBI to deliver another rate cut in its bi-monthly review due next month.
