Even as the Indian government is doing its best to shroud the troubles coating the economy, Australian and New Zealand Banking Group (ANZ) poked another hole in its defence. Reuters reported on Sunday, 18th August that ANZ had reduced its estimate of the country’s gross domestic product (GDP) for 2019-20.
From its initial forecast of 6.5 per cent, ANZ has now brought down its forecast for the Indian GDP to 6.2 per cent. Earlier this year, the Reserve Bank of India (RBI), the country’s central bank had trimmed its GDP estimates for 2019-20 from 7.0 per cent to 6.9 per cent.
These figures are well below the 8 per cent benchmark the Indian government has set as its long-term GDP-growth plan. In its advisory about the reduction of the forecast, ANZ also stated, “It is difficult to see a turnaround in the foreseeable future as the economy is beset by multiple constraints”.
In addition to reducing its figures for 2019-20, ANZ also reduced its estimations for India for 2020-21 from 7.1 per cent to 6.5 per cent. As it stands, India is experiencing a slowdown. The passenger vehicles’ sales had slid down by around 30.9 per cent for July 2019 as compared to vehicular sales for the same month in 2018. In order to combat this slowdown, the RBI had announced cuts in interest rates.