Mumbai, May 14: A study based on a survey conducted by the RBI has lowered the country’s economic growth forecast to 5.7 per cent for this fiscal from the earlier projection of 6 per cent because of a sharp downward revision in the anticipated expansion of industrial output.
The study, conducted on the basis of a survey among 17 professional forecasters, has kept unchanged the growth rate for the farm sector and the services industry at 3 per cent and 7.5 per cent, respectively, as per a statement issued by the Reserve Bank of India (RBI) on Thursday.
The signs were ominous even in the case of merchandise exports, with the survey projecting a 4 percent dip to $169 billion - sharply lower than the target of $200 billion set by the commerce and industry ministry.
The survey also indicates a drop in savings rate and capital formation - which are essential for the country to invest in productive areas like infrastructure.
While the savings rate is seen falling to 34.6 per cent from 35.3 per cent, capital formation is forecast to drop to 32 per cent from 37.5 per cent. The survey also found the growth in corporate profits dipping to 9 per cent this fiscal from a still healthy 13.5 per cent. More worrying was the ballooning fiscal deficit, seen at 6.8 per cent, as opposed to 6.2 per cent for the previous fiscal. (IANS)
The study, conducted on the basis of a survey among 17 professional forecasters, has kept unchanged the growth rate for the farm sector and the services industry at 3 per cent and 7.5 per cent, respectively, as per a statement issued by the Reserve Bank of India (RBI) on Thursday.
The signs were ominous even in the case of merchandise exports, with the survey projecting a 4 percent dip to $169 billion - sharply lower than the target of $200 billion set by the commerce and industry ministry.
The survey also indicates a drop in savings rate and capital formation - which are essential for the country to invest in productive areas like infrastructure.
While the savings rate is seen falling to 34.6 per cent from 35.3 per cent, capital formation is forecast to drop to 32 per cent from 37.5 per cent. The survey also found the growth in corporate profits dipping to 9 per cent this fiscal from a still healthy 13.5 per cent. More worrying was the ballooning fiscal deficit, seen at 6.8 per cent, as opposed to 6.2 per cent for the previous fiscal. (IANS)
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