Page 25 - Banking Finance November 2019

COVER STORY

ECONOMIC

SLOW DOWN -

WILL IT PICK

UP, HOW AND

WHEN

India's economy grew slower than expected to a 20-quarter
low in the January-March period, dragging overall growth
to a five-year low in FY19, following on from this, the central
bank is widely expected to cut interest rates further to
bolster the flagging economy.

Let us have a look into the reasons of slow growth and
measures to arrest further slide.

What has happened -
India's economy slipped by 5.8 percent in the fourth quarter
ending March 2019. GDP growth in the previous quarter
was recorded at 6.6 percent. In the fourth quarter of the
last fiscal year (2017-18) GDP growth was reported at 8.1
percent. The numbers presented by the CSO underlines a
cooling economy.
About the author
What is concerning? For the full fiscal 2018-19, the country
B P Sharma recorded GDP growth of 6.8 percent - a low in five fiscal
Chief Manager (Faculty) years. Last fiscal year, India's GDP growth rate was reported
Union Bank of India at 7.2 percent. To arrest this slowdown will be first challenge
Staff Training Centre, Bhopal to new government.

BANKING FINANCE | NOVEMBER | 2019 | 25