Search
+

    ICRA forecasts lower GDP growth in Q2 of FY20

    Synopsis

    The ICRA also forecast the country's GVA at basic prices in year-on-year (YoY) basis to 4.5 per cent respectively.

    Agencies
    The GDP and GVA were 5.0 per cent and 4.9 per cent respectively in Q1 and agriculture and services may maintain the growth rate recorded in the first quarter, an ICRA statement said on Thursday.
    Leading ratings firm ICRA expects further deterioration in the growth of India's GDP to 4.7 per cent in Q2 of FY2020, due to weakening momentum in industry.

    The ICRA also forecast the country's gross value added (GVA) at basic prices in year-on-year (YoY) basis to 4.5 per cent respectively in the quarter ending September of FY2020.

    The GDP and GVA were 5.0 per cent and 4.9 per cent respectively in Q1 and agriculture and services may maintain the growth rate recorded in the first quarter, an ICRA statement said on Thursday.

    Aditi Nayar, principal economist, ICRA said, "ICRA expects the GVA growth to decline to 4.5 per cent in Q2 of FY2020 from 4.9 per cent in Q1 of FY2020, primarily led by industry."

    With subdued domestic demand, investment activity, and non-oil merchandise exports weighing upon volume expansion, manufacturing growth is expected to decelerate further from the marginal 0.6 per cent in Q1 of FY2020, the statement said.

    Heavy rainfall in August-September of 2019 along with the delayed withdrawal of the monsoon and constrained activities in the mining and construction sectors also contributed to a lower demand for electricity from the agricultural and household sectors.

    In addition to that, muted industrial activity reduced the demand for electricity generation.

    ICRA expects the Y-o-Y GVA growth of mining and quarrying, construction, and electricity, gas, water supply and other utilities to weaken in Q2 of FY2020.

    "Various lead indicators of trade reveal a broad-based deterioration in Q2 of FY2020, which would weigh upon service sector growth in that quarter," the statement said.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    Also Read

    5 Comments on this Story

    H K Doshi305 days ago
    In fact the Trade war between USA and China and additional duties imposed by USA on various countries including India has created economic slow down world vide. It has also created very low prices of agri and agri based products , which has reduced purchasing power of rural India. There is all possibilities that USA will continue this policy and all these disturbances may convert to real conflict between two majors. India can not insulate itself from world situation more particularly in democratic set up.so be ready for stagflation in near future.
    realdeshbhakt 305 days ago
    Send IT-ED-CBI-DRI and army to shut down moody''s,ICRA,Fitch,WB,IMF.Modi hai to mumkin hai
    Nachiket Katha305 days ago
    Modi hai to barbadi hai. He is on joyride to different countries. His deputy is busy on disrupting,now with NRC. Illiterate government who can''t retain single competent economist. They are still in 1970s. Who would want to become citizen of India. Bangla Desh is fastest growing large economy (riding on textile boom along with Vietnam) which per capita income that would exceed India in next 2-3 years. Many educated Indians are moving their for jobs especially in textile sector. And these people want to disrupt lives of 100 crores to find few old Bangaladeshi who had come years. They should their energies for providing piped clean drinking water all over India would help to save lives of 10 lakh babies every year (There also Bangla Desh is better than India). So what is there with Indian citizen guarantee. Apart from high child immortality rate, 103 rank in food nourishment. Just taking advantage of large scale illiteracy to divert attention of people for economic issues which affect all of us.
    The Economic Times