(PTI)
After a broad-based deceleration in the initial quarters of this fiscal year, India’s growth rate is projected to fall to 6 percent, the World Bank said on October 13. In 2018-19, the growth rate of the country stood at 6.9 percent. However, the bank in its latest edition of the South Asia Economic Focus said the country was expected to gradually recover to 6.9 percent in 2021 and 7.2 percent in 2022 as it assumed that the monetary stance would remain accommodative, given benign price dynamics.The report, which has been released ahead of the annual meeting of the World Bank with the International Monetary Fund, noted India’s economic growth decelerated for the second consecutive year.
In 2018-19, it stood at 6.8 percent, down from 7.2 percent in the 2017-18 financial year. While industrial output growth increased to 6.9 percent due to a pick-up in manufacturing and construction activities, the growth in agriculture and the services sector moderated to 2.9 and 7.5 percent, respectively. In the first quarter of 2019-20, the economy experienced a significant and broad-based growth deceleration with a sharp decline in private consumption on the demand side and the weakening of growth in both industry and services on the supply side, the report said.
