GDP of India: 5% growth forecast in 2019-20 against 6.8% in FY19, Service Sector Expected to outperform: FICCI
India’s GDP growth stood at 4.8% for the first half of the current financial year.
The Federation of Indian Chambers of Commerce and Industry (FICCI) has estimated an Indian GDP growth rate of 5% in the current financial year. As per government data, India’s GDP growth is seen dipping due to poor showing by construction sectors and manufacturing sectors. The industry body, FICCI has hoped that the country’s growth rate could reach 5.5 percent in 2020-21 and the conditions will improve further.
According to the survey of the FICCI, the agriculture industry will grow at a rate of 2.6 percent in the current financial year and the agriculture sector can achieve a growth rate of 3.5 percent. FICCI has estimated that the country’s growth rate will be 4.7 percent in the last December quarter.
According to the report of the FICCI, Industries are very positive about the service sector and expected to achieve a 7.2% growth in 2019-20. Import is expected to decline 5.5, At the same time, exports of goods are estimated to decrease by 2.1 percent.
With this, the current account deficit is estimated to be 1.4 percent of GDP for the current financial year. According to the report, uncertainty over US-China and Brexit, coupled with ongoing political upswing around the world, and softening of the global economy are the biggest risks to the domestic economy.
FICCI conducted this survey between December and January. According to the report, due to the slowdown in growth, the income of the government can also be pressurized. According to the survey report, the opinion of several economists associated with financial services and industry banks have been included in this survey.