Categories: Business

World bank indicates it may further lower growth projection for India

Photo: PTI

World bank may further lower growth projection for India

new Delhi. The World Bank on Wednesday indicated that it may further reduce the economic growth forecast for India. He also said that to come out of the Kovid-19 crisis, important reforms in areas such as health, labor, land, skills and finance need to be pursued. The World Bank had forecast in May that India's economy is expected to decline by 3.2 per cent in FY 2020-21 and may be back on track gradually in the next financial year. The Multilateral Institute said in a report on India on Wednesday, "Challenges have emerged in recent weeks. This may have an impact on prospects in the near future. These risks include continued spread of the virus, further deterioration in the global scenario and additional pressure on the financial sector. "He said," Considering these things, a sharp decline in the revised scenario can be anticipated. . The revised scenario will be available in October 2020. "

The World Bank estimates that India's fiscal deficit may increase to 6.6 percent in the current financial year and may remain at a high of 5.5 percent in the subsequent year. He said, "The epidemic has had an impact on the economy at a time when the economy was already declining." The country's real GDP (GDP) grew by 7 percent in 2017-18, which was 2018. It came down to 6.1 percent in 19 and 4.2 percent in 2019-20. The World Bank said that although India has made many reforms on the policy front. These include company rate cuts, regulatory relaxations for small businesses, reduction in personal income tax rates, trade regulatory reforms. But the epidemic has lowered expectations about their expected outcomes. He said, "The scenario has changed significantly now and the economy will decline in the current financial year." According to the World Bank, the economic impact of the epidemic will be seen as a domestic demand and supply constraint. Due to this, some service sectors such as trade, transport, tourism and travel are expected to be severely affected. The World Bank said that in order to come out of the Kovid-19 crisis, important reforms in areas such as health, labor, land, skills and finance need to be constantly pushed forward.

This post was published on August 20, 2020 1:02 am

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