On Monday, Singapore based DBS Bank said that the economy of India is set to witness slow growth for the second half of the fiscal year 2020. For the second quarter, GDP data is to be unveiled on November 29. "Real GDP is likely to print 4.3 percent YoY in 3Q vs 2Q's 5 percent, nearing the trough for this cycle," DBS said in its daily economic report.
The weakness shall persist further in the second half amid consumption crisis as well as tepid private sector activity. The production has dipped across industries as well as announcement of new projects has declined to multi-year low.
A downward sentiment in employment and income is reflected by the surveys of the RBI.
The report highlighted that direct and indirect collection point to a slower demand as well as there has been weak credit offtake as crisis hit banking and NBFC sector has tightened its due diligence norms. In the wake of general assembly election, fiscal expenditure gained pace.
Trade however shall not be influencing the country's GDP as both exports and imports have been falling. "Under GVA (Gross Value Added), we expect 4.1 percent print, with most sectors barring public administration to have slowed in the quarter," said DBS.