World Bank cuts India’s FY20 growth estimates to 5%

World Bank cut its India’s growth forecasr for financial year 2020 to 5% from the estimated growth of 6% earlier. The multilateral development lender also expects India’s growth to pick up slightly to 5.8 per cent in the next fiscal. World Bank’s Global Economic Prospects report stated weakness in credit from non-banking financial companies (NBFCs) as one of the primary reasons behind the growth rate cut.

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World Bank’s estimates are in line with the other predictions. The State Bank of India also reduced the GDP growth forecast for FY20 to 4.6 per cent from the earlier 5 per cent. The SBI Ecowrap report has predicted the growth rate to remain below 6 per cent for two years in a row.  As for the global growth, the World Bank shaved 0.2 percentage point off of growth for calendar years 2019 and 2020 at 2.4 per cent and 2.5 per cent.