India's growth rate to be reduced to 5% in 2020: World Bank

Enduring the financial issues the world bank projects India's growth rate to decline to 5 percentage and the country's growth rate would rise to about 5.8 in following financial year. India's growth rate has currently touched a 11 year low of 5% due to poor performance of construction and manufacturing sectors according to the governments data. It is said that tighter credit conditions of non banking Sector are contributing to a substantial weakening of domestic demand in India. The report stated " in India activity was constraint by insufficient availability of credit as well as by subdued private consumption". The bank also stated that south asia will pick up to 6 percent in the year 2022 assuming the rise in domestic demands. In india economic activity has slowed down considerably in 2019 which was most obvious in the agricultural and manufacturing sectors whereas gov related sub sections received Support by public spending. In 2019 july-september quarter the growth was down to 4.5% which was the lowest since 2013.

The bank congratulated India for efforts to eliminate subsidies on LPG, from 2012 india hs been revising the subsidy regimen for LPG. Black markets were formed and there the subsidised LPG is sold by the people to commercial sectors so the government slowly increased the price of LPGs while implementing a large scale targeted cash transfer mechanism.

According to the bank the global economic growth was projected at 2.5% in 2020 as the trade and investment are recovering from last year, while America's growth is projected to slow down by 1.8% due to increased tariffs and Political uncertainty. Euro area growth is projected to go down by 1 Percent ,Bangladesh is expected to grow above 7 percent and Pakistan is expected to maintain its growth of 3 percent or less.

The report also cites improved business confidence and support from infrastructure investments in Afghanistan, Bangladesh, and Pakistan.