According to a recently released report by India Ratings and Research (Ind-Ra), the GDP growth is expected to marginally improve in FY20 at 7.5 percent as against estimated 7.2 percent in FY19. The icing on the cake would be: it would be evenly balanced.
“Post demonetisation and GST implementation, the agency had expected FY19 to be a year of quick recovery and indeed the recovery has been sharp with GDP growth coming in at 7.2% (FY18: 6.7%). Ind-Ra believes GDP growth would have been even better but for the global headwinds caused by (i) an abrupt rise in crude oil prices and (ii) strengthening of USD and hiccups faced on the domestic front due to (i) frequent revisions in GST rates, (ii) continued agrarian distress, (iii) slow progress on Insolvency and Bankruptcy Code cases, and (iv) liquidity crunch faced by non-banking finance companies post IL&FS saga. However, GDP growth in FY20 will be more dispersed and evenly balanced across sectors as well as demand-side growth drivers,” the report highlighted.