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Opinion | Brace for economic slowdown after 2019 Lok Sabha polls

An economic slowdown could be bad news for India. It could stymie the nascent recovery in gross fixed capital formation (GFCF) seen in the last couple of quarters

December 14, 2018 / 09:44 IST
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RN Bhaskar

One set of elections is over. The results have confounded many. Psephologists are still trying to make sense of what happened and why. Few are willing to take bets on what the eventual electoral verdict will be in the 2019 general elections. Likewise, few are willing to take bets on the economy.

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In three separate warnings in the last month, global rating agency Fitch Ratings, has pointed to a slowdown in the Indian economy, albeit after a slight rise just before the elections, and slowing capital inflows.

The rating agency cut India's FY19 GDP growth forecast to 7.2 percent from 7.8 percent. It has also cut growth forecasts for FY20 and FY21 to 7 percent from 7.3 percent and 7.1 percent from 7.3 percent, respectively.