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FY20 growth may be lowest in 11 years; what does it mean for market?

Geopolitical tensions, and not GDP numbers, are the bigger worry at the moment, say some experts.

January 08, 2020 / 12:04 PM IST

The government has pegged the economic growth rate for 2019-20 at 5 percent, lower than the 2018-19 expansion rate of 6.8 percent.

The Central Statistics Office (CSO) put the advance estimate for FY20 real GDP growth at 5 percent, same as that of India's central bank. The Reserve Bank of India had in the December policy meet revised downwards to 5 percent its GDP outlook for 2019-20.

At 5 percent, the growth will be at an 11-year low. India's GDP—the total value of goods and services produced in the country—slumped to over a six-year low of 5 percent in the April-June quarter and 4.5 percent in the next quarter.

The numbers don’t come as a surprise as the signs of weakness in the economy have been clear enough for the last many quarters.