INSUBCONTINENT EXCLUSIVE:
fiscal year with a dismal 5 per cent growth in the first quarter, broking house Kotak Equities on Tuesday also cut down India's 2019-20
GDP growth estimate to 5.8 per cent and said it sees the RBI cutting its key interest rate by 40 basis points (bps) in the central bank's
October monetary policy review."On the policy front, after the dismal 1QFY20 growth performance and expectations of benign inflation, the
monitory policy committee (MPC) will likely have space to cut rates by up to 75 bps through the rest of FY2020, with a cut of around 40 bps
growth in 1QFY20 decelerated sharply to 5 per cent on the back of weakness in private consumption and investment
With a deeper-than-estimated trough and lack of significant impetus to the growth drivers in the near term, we further revise down our
effects in 2QFY20, and pickup in the pace of Central government spending post elections
The surplus dividend of around Rs 1.76 lakh crore from the RBI will further aid the government in spending immediately," it
said."Construction could see some uptick as the government refocuses on capex
We note that our GDP growth estimate of 5.8 per cent is much lower than the RBI's estimate of 6.9 percent, which would likely be revised
down in the October policy," the report added.On the production side, the report said there is near-stagnant manufacturing sector growth
sharp drop in private consumption and investment growth
farm income growth, urban consumption has been under pressure owing to a trough in savings rate, worsening financing conditions and fading
out of government salary adjustments.Government expenditure growth in Q1 also slowed to 8.8 per cent (13.1 per cent in 4QFY19) primarily due
decline in government capex
Global growth and trade headwinds were visible in export growth slowing to 5.7 per cent (10.6 per cent in 4QFY19).Get Breaking news, live
coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
