Ind-Ra cuts India's GDP forecast to 5.6%

India Ratings and Research, the Indian subsidiary of Fitch group has revised India's GDP forecast from 6.1 % to 5.6 % for FY20.
The new projection suggests that second quarter FY20 GDP growth is likely to be 4.7%.
The ratings agency said that private final consumption expenditure (PFCE) growth is now expected to grow 4.9% in FY20, as against the previous forecast of 5.5%, which is significantly lower than the 8.1% in FY19, and the slowest since at least FY13.
Investment expenditure growth, as measured by gross fixed capital formation (GFCF), is also expected to moderate to 6% in FY20 from the earlier forecast of 7%. It was 10% in the previous year.
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country boundary in a specific time period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of the country’s economic health.