The Indian economy slowed down its pace in Quarter 3 of Financial Year 2018. Staggering rural incomes and declining urban demands are considered the reasons for weighing down, according to the international news organization, Thomas Reuterss poll.
In the poll carried out by Reuters, over 55 economists polled and estimated the growth for 6.9 per cent, against the earlier 7.1 per cent in Quarter 3.
Charu Chanana, an Asian economist at Continuum Economics, said, Consumption drivers should remain modest as tight liquidity persisted through most of the quarter and farm distress restrained rural consumption. as reported by the Indian daily newspaper, The Economic Times.
GDP forecasts have been scheduled for February 28, 2019, at 12:00 GMT and may fall between 6.3 per cent and 7.9 per cent. Further, a dip in GDP is inferred which would be two times more than 8.2 per cent in quarter 1, 2018.
The move taken by RBI of changing its stance to neutral and slash rates is a considerably vital factor in slowing down the growth momentum. The central governments decision was taken so as to boost the market following the market inflation.
However, global uncertainty over trade conflicts, Brexit and oil prices could add to growth headwinds in India, said RBI's Monetary Policy Committee in its statements, as per the Indian daily newspaper, The Economic Times.
Shashank Menidratta, an economist at IBM, said, The RBI's commentary on growth and the upcoming GDP data should support the central bank's surprise cut... there should be more dovishness in the next meeting, because of the ongoing slowdown. as reported by the Indian daily newspaper, The Economic Times.
The decelerating economy can be growing concern for the government as it plans to enhance lending and elevate growth prior to the election.