India Ratings & Research (A Fitch Group Company) has lowered the country’s growth forecast for the current fiscal to 7.3%, from the earlier projection of 7.5 %. The agency has listed three key reasons for lowering its projection.
- Prediction of lower-than-normal monsoon for 2019 and the continued agrarian distress.
- The loss of momentum in the industrial output growth, especially manufacturing and electricity, is likely to hurt growth.
- The slow progress in cases referred to the National Company Law Tribunal under the Insolvency and Bankruptcy Code, 2016, for resolution of the non-performing assets of the banking sector becoming a long-drawn-out process.
Source- The Hindu Business Line