The International Monetary Fund on Tuesday slashed India's GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 per cent down from its April projections.
IMF’s sharp reduction of 1.2 per cent is in line with forecasts of other agencies, including the World Bank, Moody’s and the RBI, whose revised growth figures range between 5.8 and 6.3 per cent.
However, the IMF's World Economic Outlook (WEO) released on Tuesday projected India's economy to pick up and grow by 7 per cent in the 2020 fiscal year.
GDP growth cooled for a fifth straight quarter to 5 per cent in the three months ended June, at the slowest pace since March 2013.
The comments were made at an interaction before the RBI sharply revised down its GDP growth target to 6.1 per cent on Friday.
What changed the terms over the last few years from when India was the toast for global business and Bangladesh was an also ran?
However, steel and fertiliser production grew by 5 per cent and 2.9 per cent, according to government data.
In the year-ago period, CAD had printed at 2.3 per cent of GDP or USD 15.8 billion.
According to the Economist Intelligence Unit, annual real GDP growth dropped to a six-year low of 5 per cent in the second quarter and data from the third quarter show 'little sign of improvement'.
The volume of India's exports that grew by 6.6 per cent in 2017, slowed down to 4.3 per cent last year, according to the report.
Sitharaman had in her maiden budget, presented on July 5, targeted a fiscal deficit of 3.3 per cent of the GDP.
It said that abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions.
Most economists felt that while the move would give a supply-side boost to investment, it would not address the real concern of slow demand afflicting the economy.
Analysts say the surprise move is sure to boost the dangling bottom line of companies struggling with a slump in demand, but it may not turn around the business cycle.
The GDP growth in the April-June quarter of the 2019- 20 fiscal was 5 per cent, according to government data.