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ICRA predicts India’s GDP growth rate to slow down

New Delhi: Rating agency ICRA expects India’s growth rate to further slowdown to 4.7 percent in Q2 FY2020, due to weak industrial output.

Accordingly, the rating agency expects further deterioration in the growth rate of India’s GDP and the gross value added (GVA) at basic prices in year-on-year terms to 4.7 percent and 4.5 percent, respectively, in Q2 FY2020, from 5 percent and 4.9 percent, respectively, in Q1 FY2020.

However, sectors such as agriculture and services may be able to “maintain the growth rate recorded in Q1 FY2020”.

“With subdued domestic demand, investment activity, and non-oil merchandise exports weighing upon volume expansion, manufacturing growth is expected to decelerate further from the marginal 0.6 percent in Q1 FY2020,” said ICRA’s Principal Economist Aditi Nayar.

“To some extent, lower raw material costs would bolster earnings, and may prevent manufacturing GVA from slipping into a YoY contraction in Q2 FY2020.” (IANS)

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