It also added "We have revised down our growth forecast for India. We now forecast slower real GDP growth of 5.6 percent in 2019, from 7.4 percent in 2018". "India's economic slowdown is lasting longer than previously expected."
CNBC-TV18 Consulting Editor Udayan Mukherjee digs deeper into whether or not the market will be able climb higher from current levels in the face of a struggling economy.
Moneycontrol's Sakshi Batra talks to Gaurav Choudhury to understand its negative impact on the upcoming GDP numbers for the quarter.
Srivastava's statement came a day after the Congress criticised the BJP-led central government's plan to revise the base year from the current 2011-12 to 2017-18 for calculating the GDP growth.
Moody’s changed its outlook on India to “negative” from “stable” amid concerns that the country’s economic growth will remain "materially lower than in the past". The outlook partly reflects government and policy ineffectiveness in addressing economic weakness, which led to an increase in debt burden from already high levels, the agency said.
RCEP would also have encouraged firms to make India part of their global value chains
Fitch said it was revising the fiscal deficit forecast as revenue collection is likely to fall far short of the projections in the FY2019/20 Union Budget due to weak goods and services tax (GST) and corporate income tax collections.
But the pace of growth was seen slowing from the second quarter as a strong typhoon and rainy weather countered strong domestic spending and weak external demand hurt exports.
The government has pegged the fiscal deficit for the current financial year at Rs 7.03 lakh crore, aiming to restrict the deficit at 3.3 percent of the gross domestic product (GDP).
Though the ministry is considering 2017-18 as the new base year, no decision has been taken as the committees of experts are awaiting some more data before finalising their opinion.
The government is following a glide path on fiscal deficit, said Economic Affairs Secretary Atanu Chakraborty responding to a question in regard to government finances.
If the Modi government seizes the opportunity for reform, the rewards will be substantial
Fitch also said the recent government measures to boost economy including a cut in corporate tax rates will gradually nudge growth.
India needs to focus on decentralization not only from Union government to state government but within states
The IMF’s World Economic Outlook database forecasts that India’s GDP growth will be well short of 8 per cent even by 2024. To beat this rather depressing forecast, it’s time for radical reforms
Global benchmark Brent crude oil futures fell by 9 cents, 0.2%, to $59.82 a barrel by 0039 GMT.
The deal is also estimated to contribute about 4 trillion yen to Japan's gross domestic product based on its fiscal 2018 GDP and the pact will create about 280,000 jobs in Japan, it said.
Friday's data marked a further loss of momentum for the economy from the second quarter's 6.2% growth, likely raising expectations that Beijing needs to roll out more measures to ward off a sharper slowdown.
The government is now trying to cap the fiscal deficit for 2019/20 at 3.8 percent of GDP from the target set during the budget presented in July, the two officials told Reuters.
Apart from the Communist countries, India’s government spending is higher than East Asian countries, as a percentage of GDP
India's GDP expansion has slowed to a six-year low of five percent for the June quarter. This has led to a rash of downward revisions in expectations, including from the RBI which now expects GDP growth to come down to 6.1 percent in FY20.
Moody's attributed the deceleration to an investment-led slowdown that has broadened into consumption, driven by financial stress among rural households and weak job creation.
The high industrial growth achieved by Bangladesh can be attributed to an openness to foreign investment and improving the ease of doing business. This is in contrast to the policy situation prevailing in India marked by a degree of protection and regulatory hurdles.
RBI survey on business sentiment in Indian manufacturing at lowest level since the global financial crisis
Overall business sentiment in the Indian manufacturing sector has deteriorated recently, the Monetary Policy Report has noted.