National Statistical Office of India has released the GDP growth estimates for Quarter 3 in the Financial year. The GDP growth is now projected at 0.4%.

News Alert: India's GDP number for financial year 2021 year out

India is thus a net importer in November 2020, with a trade deficit of USD 9.96 billion, as compared to a trade deficit of USD 12.75 billion, an improvement by 21.93%.

India's November trade deficit narrows to $9.96 billion

India’s economy shrank 7.5 per cent in the fiscal second quarter, after seeing a record contraction of 23.9 per cent in Q1.

WION Dispatch: India’s economy shrinks 7.5% in Q2, falls into recession

Finance Minister Nirmala Sitharaman is addressed a press conference during which the FM announced more stimulus to boost the Coronavirus-hit economy. FM announces Atmanirbhar Bharat Rozgar Yojana for formal sector.

WION Dispatch: Finance Minister announces more stimulus to boost 'COVID-hit' economy

Activity in India’s dominant services industry, expanded for the first time in eight months in October as demand surged.

India's services activity grows in October after months of contraction

India's factory activity expanded at its fastest pace in over a decade in October as demand and output continued to recover strongly from coronavirus-related disruptions

India's October factory growth at decade high

Goods and Services Tax (GST) collections for October grossed Rs 1.05 lakh crore, the highest so far in the financial year and 10% higher than collections in the same month last year, which stood at Rs 95,379 crore.

GST collection crosses Rs 1 lakh crore mark for first time since February

IMF has said that India's gross domestic product (GDP) is expected to contract by 10.3% due to the impact of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic.

IMF's biannual world economic outlook: India's GDP to contract

The World Bank has said India’s GDP is expected to further contract by 9.6% this fiscal as a reflection of the economic slump the country has suffered due to the national lockdown induced by the coronavirus pandemic.

World Bank: India's GDP to contract in FY21

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-to-become-first-country-to-circulate-iodine-based-sanitisers-333155">India to become first country to circulate iodine-based sanitisers</a>

“India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here.

Regional growth is projected to rebound to 4.5 per cent in 2021, it said.

Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said.

“The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call.

“It is an exceptional situation in India. A very dire outlook,” he said.

There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India.

In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India.

With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate.

Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people.

According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework.

Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said.

“We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic.

“We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said.

Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive.

“We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net.

“But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector.

“There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said.

Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent.

In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency.

To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said.

“Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said.

After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent.

This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before. The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years. Also read | India to become first country to circulate iodine-based sanitisers “India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here. Regional growth is projected to rebound to 4.5 per cent in 2021, it said. Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said. “The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call. “It is an exceptional situation in India. A very dire outlook,” he said. There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India. In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India. With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate. Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people. According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework. Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said. “We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic. “We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said. Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive. “We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net. “But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector. “There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said. Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent. In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency. To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said. “Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said. After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent. This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

India's GDP expected to contract by 9 per cent this year: World Bank

Global ratings agency Fitch on Tuesday sharply revised its forecast to India's GDP growth, estimating that it will contract 10.5%, while Goldman Sachs expects it to decline by 14.8%in the current fiscal year.

Global rating agencies cut India's GDP forecast

There is no sign of a health-economy trade-off. Countries with low GDP fall have less COVID-19 deaths. India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

Countries with low GDP fall have less COVID-19 deaths

India's economic collapse has led to many unwanted firsts. The GDP contraction of 23.9% in Q1 is the sharpest on record. Finance Minister Nirmala Sitharaman has called this an 'Act Of God'.

Gravitas: India's Worst GDP Contraction On Record

As per the data released by the National Statistical Office (NSO), India’s Gross Domestic Product (GDP) for the April-June quarter (Q1) slipped by a sharp 23.9 per cent.

First GDP numbers during COVID times

India’s GDP contracts by 23.9% in April-June quarter

The impact of the pandemic could cause a structural downshift in the potential output of Indian economy, the RBI said on Tuesday in its 2019-20 annual report.

Economic recovery post COVID-19 will be different from that of 2008

India's economy grew&nbsp;3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

In 2019-20, the Indian economy had grown&nbsp;by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said.

The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy.

India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic.&nbsp;

China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO). In 2019-20, the Indian economy had grown by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said. The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy. India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic. China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's GDP growth slips to 3.1% in January-March quarter

Watch today in WION Dispatch: India GDP growth slows to 3.1% in Q4 of 2019-20. This is the lowest GDP growth in last 11 years. Watch this video to know more.

WION Dispatch: India GDP growth slows to 3.1% in Q4 of 2019-20

Watch today in WION Dispatch: India's GDP growth slows to 3.1% in Q4 of 2019-20. Watch this video to get more details.

WION Dispatch: Lowest GDP growth in India in 11 year

The sharp cut in India forecast was necessitated due to slump in economic activities and very stringent lockdown policy, the rating agency said.

India FY21 GDP to contract by 5%: S&P

India's fourth recession since independence, the first since liberalisation and perhaps the worst to date, is here, CRISIL said on Tuesday as it predicted the economy to shrink by 5 per cent in the current fiscal because of coronavirus lockdown.

"The first quarter (April to June 2020) will suffer a staggering 25 per cent contraction," it said in its assessment of India's GDP.

"About 10% of gross domestic product (GDP) in real terms could be permanently lost. So going back to the growth rates seen before the pandemic is unlikely in the next three fiscals."

In the past 69 years, India has seen a recession only thrice as per available data in fiscals 1958, 1966 and 1980. The reason was the same each time a monsoon shock that hit agriculture, then a sizeable part of the economy.

Crisil said the recession in the current fiscal (April 2020 to March 2021) is different as agriculture could soften the blow this time by growing near its trend rate, assuming a normal monsoon.

The coronavirus lockdown, first imposed on March 25 and extended thrice till May 31, has curtailed economic activity severely.

"The first quarter of this fiscal will be the worst affected," it said. "Not only will the first quarter be a washout for the non-agricultural economy, services such as education, and travel and tourism among others could continue to see a big hit in the quarters to come. Jobs and incomes will see extended losses as these sectors are large employers."

It also saw economic activity in states with high COVID-19 cases suffering prolonged disruption as restrictions could continue longer.

Stating that the economic costs now beginning to show up in the hard numbers are far worse than initial expectations, it said industrial production for March fell by over 16 per cent, exports contracted 60.3 per cent in April, and new telecom subscribers declined 35 per cent, while railway freight movement plunged 35 per cent on-year.

"Indeed, given one of the most stringent lockdowns in the world, April could well be the worst-performing month for India this fiscal," it said.

Counting lockdown 4.0, Indians have had 68 days of confinement. S&amp;P Global estimates that one month of lockdown shaves 3 per cent off annual GDP on average across Asia-Pacific, it said adding since India's lockdown has been the most stringent in Asia, the impact on economic growth will be correspondingly larger.

"CRISIL forecasts India's GDP growth to fall off a cliff and contract 5% in fiscal 2021," the report said.

"Earlier, on April 28, we had slashed our prediction to 1.8 per cent growth from 3.5 per cent growth. Things have only gone downhill since. While we expect non-agricultural GDP to contract 6 per cent, agriculture could cushion the blow by growing at 2.5 per cent."

On the Rs 20.9 lakh crore economic relief package announced by the government to support the economy, Crisil said the package has some short-term measures to cushion the economy but sets its sights majorly on reforms, most of which will have payoffs only over the medium term. 
"We estimate the fiscal cost of this package at 1.2 per cent of GDP, which is lower than what we had assumed in our earlier estimate," it said.&nbsp;

India's fourth recession since independence, the first since liberalisation and perhaps the worst to date, is here, CRISIL said on Tuesday as it predicted the economy to shrink by 5 per cent in the current fiscal because of coronavirus lockdown.

India's fourth recession since independence, the first since liberalisation and perhaps the worst to date, is here, CRISIL said on Tuesday as it predicted the economy to shrink by 5 per cent in the current fiscal because of coronavirus lockdown. "The first quarter (April to June 2020) will suffer a staggering 25 per cent contraction," it said in its assessment of India's GDP. "About 10% of gross domestic product (GDP) in real terms could be permanently lost. So going back to the growth rates seen before the pandemic is unlikely in the next three fiscals." In the past 69 years, India has seen a recession only thrice as per available data in fiscals 1958, 1966 and 1980. The reason was the same each time a monsoon shock that hit agriculture, then a sizeable part of the economy. Crisil said the recession in the current fiscal (April 2020 to March 2021) is different as agriculture could soften the blow this time by growing near its trend rate, assuming a normal monsoon. The coronavirus lockdown, first imposed on March 25 and extended thrice till May 31, has curtailed economic activity severely. "The first quarter of this fiscal will be the worst affected," it said. "Not only will the first quarter be a washout for the non-agricultural economy, services such as education, and travel and tourism among others could continue to see a big hit in the quarters to come. Jobs and incomes will see extended losses as these sectors are large employers." It also saw economic activity in states with high COVID-19 cases suffering prolonged disruption as restrictions could continue longer. Stating that the economic costs now beginning to show up in the hard numbers are far worse than initial expectations, it said industrial production for March fell by over 16 per cent, exports contracted 60.3 per cent in April, and new telecom subscribers declined 35 per cent, while railway freight movement plunged 35 per cent on-year. "Indeed, given one of the most stringent lockdowns in the world, April could well be the worst-performing month for India this fiscal," it said. Counting lockdown 4.0, Indians have had 68 days of confinement. S&P Global estimates that one month of lockdown shaves 3 per cent off annual GDP on average across Asia-Pacific, it said adding since India's lockdown has been the most stringent in Asia, the impact on economic growth will be correspondingly larger. "CRISIL forecasts India's GDP growth to fall off a cliff and contract 5% in fiscal 2021," the report said. "Earlier, on April 28, we had slashed our prediction to 1.8 per cent growth from 3.5 per cent growth. Things have only gone downhill since. While we expect non-agricultural GDP to contract 6 per cent, agriculture could cushion the blow by growing at 2.5 per cent." On the Rs 20.9 lakh crore economic relief package announced by the government to support the economy, Crisil said the package has some short-term measures to cushion the economy but sets its sights majorly on reforms, most of which will have payoffs only over the medium term. "We estimate the fiscal cost of this package at 1.2 per cent of GDP, which is lower than what we had assumed in our earlier estimate," it said.

India facing its worst recession in current fiscal, says Crisil

Chief Economic Advisor (CEA) K V Subramanian on Monday said that GDP growth in the first quarter (April to June) this fiscal is likely to range between one to two per cent due to COVID-19 pandemic and subsequent lockdown, reported news agency ANI.

Chief Economic Advisor (CEA) K V Subramanian on Monday said that GDP growth in the first quarter (April to June) this fiscal is likely to range between one to two per cent due to COVID-19 pandemic and subsequent lockdown, reported news agency ANI. The economy could pick up as industries restart their operations with the streamlining of supply chains and migrant workers getting back to their jobs in the second quarter, he reportedly told ANI. The nationwide lockdown has brought economic activities to a virtual standstill. Subramanian said that it is difficult to estimate possible job losses due to the lockdown due to lingering uncertainty. However, good companies are likely to retain most of their workforce and with minimum wage cuts, as they resume operations, he told. The Chief Economic Advisor said the global economic scenario is weak and there is bound to be an impact on Indian exports. "It is, however, time for Indian industries to revamp their strategies, adopt modern technologies and gear up to compete in global markets as many multinational corporations look towards shifting their manufacturing base out of China,'' he said. He said Indian cities provide a vibrant ground for migrant workers where they can aspire for good working conditions, better lifestyles, and reasonable education and healthcare facilities compared to their home towns. Subramanian said the current volatility in the stock market does not reflect strong fundamentals of the Indian economy. The markets ride on sentiments of investors who look for near-term profits in high-growth areas.

GDP growth to hover between 1 to 2 pc in Q1 FY21: CEA Subramanian

ndia's manufacturing activity declined at its sharpest pace on record in April as the lockdown announced by the government to curb the rapid spread of the deadly COVID-19

India's factory activity slumps to record low in April

In this segment of Straight Talk, WION in an exclusive conversation spoke to IMF Chief Economist Gita Gopinath on India's GDP growth in 2020.

WION exclusive Straight Talk with IMF Chief Economist  Gita Gopinath on Indian Economy

The Reserve Bank Of India has announced liquidity measures for banks and NPFC's and now the central bank has forecast a 7.4% GDP growth. Watch report.

RBI governor on revival of economy | India's GDP to grow at 7.4% in 2021-22

The cost of <a href="https://www.wionews.com/world/climate-change-concerns-not-limited-to-young-people-says-sri-lankas-ex-pm-ranil-wickremesinghe-at-wion-global-summit-284551">climate change</a> may be higher than expected and India is among the countries most vulnerable to the crisis.

<a href="https://www.wionews.com/science-tech/nearly-half-of-worlds-beaches-disappearing-due-to-climate-change-study-283976">Also Read:&nbsp;Nearly half of world's beaches disappearing due to climate change</a>

A recent report has warned that temperatures in India would reach such extreme levels in the near future that they may prove to be lethal for an average human being.

The effects of climate change can be seen everywhere, toxic air, intense heatwave, forest fires, melting ice caps, flash floods and sinking cities.

According to a report by the McKinsey global institute, high temperatures and heat waves may threaten the very survival of human beings.

India could be one of the world's first places where temperatures may rise above the survival threshold for humans.

Climate change and global warming may hit India’s GDP within a decade, the report said.

The report says by 2030, temperatures in India could reach such a level that outdoor workers may be forced to cut short their daylight working hours to beat lethal heat waves.

The resultant loss in productivity could put 2.5 per cent to 4.5 per cent of India's GDP at risk annually and by 2050, several pockets with a population of 16 to 20 crore people would experience 60 per cent annual chance of such heat waves.

Just 4-5 hours of outdoor exposure during this time can prove to be fatal for a healthy human being.

As of 2017, heat-exposed work produces about 50 per cent dip in India's GDP mainly agricultural and mining. 
&nbsp;

The cost of climate change may be higher than expected and India is among the countries most vulnerable to the crisis. Also Read: Nearly half of world's beaches disappearing due to climate change A recent report has warned that temperatures in India would reach such extreme levels in the near future that they may prove to be lethal for an average human being.

The cost of climate change may be higher than expected and India is among the countries most vulnerable to the crisis. Also Read: Nearly half of world's beaches disappearing due to climate change A recent report has warned that temperatures in India would reach such extreme levels in the near future that they may prove to be lethal for an average human being. The effects of climate change can be seen everywhere, toxic air, intense heatwave, forest fires, melting ice caps, flash floods and sinking cities. According to a report by the McKinsey global institute, high temperatures and heat waves may threaten the very survival of human beings. India could be one of the world's first places where temperatures may rise above the survival threshold for humans. Climate change and global warming may hit India’s GDP within a decade, the report said. The report says by 2030, temperatures in India could reach such a level that outdoor workers may be forced to cut short their daylight working hours to beat lethal heat waves. The resultant loss in productivity could put 2.5 per cent to 4.5 per cent of India's GDP at risk annually and by 2050, several pockets with a population of 16 to 20 crore people would experience 60 per cent annual chance of such heat waves. Just 4-5 hours of outdoor exposure during this time can prove to be fatal for a healthy human being. As of 2017, heat-exposed work produces about 50 per cent dip in India's GDP mainly agricultural and mining.

Climate change, global warming may hit India’s GDP within a decade: Report

According to the National Statistical Office (NSO), India's<a href="https://www.wionews.com/business-economy/indias-gdp-seen-growing-at-47-in-december-quarter-283196"> Gross Domestic Product</a>(GDP) slipped to 4.7 per cent in October-December 2019.

<a href="https://www.wionews.com/business-economy/india-china-to-account-for-nearly-35-of-global-gdp-in-2060-study-278393">Also Read: India, China to account for nearly 35% of global GDP in 2060</a>

India's GDP was 5.6 per cent in the corresponding quarter of 2018-19.

India's economy grew 5.1 per cent in the nine-month period between April-December 2019 as against 6.3 per cent in the same period a year ago, the NSO informed.

The NSO pegged economic growth at 5 per cent in 2019-20 on Friday. India's Reserve Bank had pegged India's GDP growth at 5 per cent for 2019-20.

The Controller General of Accounts (CGA) informed that India's fiscal deficit touched 128.5 per cent of the whole year budget target at January-end, the government had targeted to restrict the fiscal deficit at Rs 7,66,846 crore during the year ending March 31, 2020.

In the Budget, finance minister&nbsp;Nirmalal Sitharaman had raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent earlier for 2019-20.

According to the National Statistical Office (NSO), India's Gross Domestic Product(GDP) slipped to 4.7 per cent in October-December 2019. Also Read: India, China to account for nearly 35% of global GDP in 2060 India's GDP was 5.

According to the National Statistical Office (NSO), India's Gross Domestic Product(GDP) slipped to 4.7 per cent in October-December 2019. Also Read: India, China to account for nearly 35% of global GDP in 2060 India's GDP was 5.6 per cent in the corresponding quarter of 2018-19. India's economy grew 5.1 per cent in the nine-month period between April-December 2019 as against 6.3 per cent in the same period a year ago, the NSO informed. The NSO pegged economic growth at 5 per cent in 2019-20 on Friday. India's Reserve Bank had pegged India's GDP growth at 5 per cent for 2019-20. The Controller General of Accounts (CGA) informed that India's fiscal deficit touched 128.5 per cent of the whole year budget target at January-end, the government had targeted to restrict the fiscal deficit at Rs 7,66,846 crore during the year ending March 31, 2020. In the Budget, finance minister Nirmalal Sitharaman had raised fiscal deficit target to 3.8 per cent of the GDP from 3.3 per cent earlier for 2019-20.

India's GDP growth slips to 4.7% in December quarter

Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said.

Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic.

The median forecast of a Reuters poll of economists put annual economic growth at 4.7% in the December quarter, marginally higher than 4.5% in the previous quarter thanks to a small rebound in rural demand, private consumption and government spending.

"The economy showed some signs of recovery in December quarter due to higher government spending and external factors, but faces a risk of relapsing in the current quarter mainly due to the coronavirus," said N.R. Bhanumurthy, an economist at National Institute of Public Finance and Policy (NIPFP), a Delhi-based government funded think tank.

Even achieving 4.5% annual growth this quarter would be a challenge, Bhanumurthy added.

In its annual budget presented earlier this month, the government estimated economic growth in the current fiscal year ending in March would be 5%, the lowest for 11 years.

And the government only targeted a slight recovery in growth to 6% for 2020/21, well below the levels required to generate jobs for the millions of young Indians entering the labour market each month.

Analysts expected growth would pick up gradually driven by a favourable base effect, a cut in corporate tax rates last September and increased government spending.

But, the central bank earlier this month warned that the downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still uncertain and unfolding.

"Although number of cases of COVID-19 (coronavirus) in India are less, the economic impact is expected to accrue from supply chain risk," Soumya Kanti Ghosh, chief economist at State Bank of India, citing problems in supply of raw materials from China for pharmaceuticals and other exports.

A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the Reserve Bank of India hold off on further cuts in interest rates for now, while keeping its monetary stance accommodative.

Finance Minister Nirmala Sitharaman has said some signs of green shoots were visible in the economy as the government has eased bottlenecks for consumer and industry bank loans, while expanding spending on infrastructure.

But analysts remained doubtful.

Goldman Sachs cut its growth forecast to 4.9% for the March quarter from earlier estimate of 5.4%.

"Despite the downward revision, we believe the risks to our growth forecast are still tilted to the downside, given the risk aversion in the domestic financial sector, the continued weakness in rural demand," Goldman Sachs, said in a note on Wednesday.

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Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said.

Having suffered its weakest expansion in over six years in the September quarter, India's economy probably fared slightly better in the December quarter, before suffering a relapse due to the impact of the coronavirus globally, analysts said. Gross domestic product data due to be released on Friday will cover up to the end of last year, before the epidemic in China had sparked fears of a pandemic. The median forecast of a Reuters poll of economists put annual economic growth at 4.7% in the December quarter, marginally higher than 4.5% in the previous quarter thanks to a small rebound in rural demand, private consumption and government spending. "The economy showed some signs of recovery in December quarter due to higher government spending and external factors, but faces a risk of relapsing in the current quarter mainly due to the coronavirus," said N.R. Bhanumurthy, an economist at National Institute of Public Finance and Policy (NIPFP), a Delhi-based government funded think tank. Even achieving 4.5% annual growth this quarter would be a challenge, Bhanumurthy added. In its annual budget presented earlier this month, the government estimated economic growth in the current fiscal year ending in March would be 5%, the lowest for 11 years. And the government only targeted a slight recovery in growth to 6% for 2020/21, well below the levels required to generate jobs for the millions of young Indians entering the labour market each month. Analysts expected growth would pick up gradually driven by a favourable base effect, a cut in corporate tax rates last September and increased government spending. But, the central bank earlier this month warned that the downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still uncertain and unfolding. "Although number of cases of COVID-19 (coronavirus) in India are less, the economic impact is expected to accrue from supply chain risk," Soumya Kanti Ghosh, chief economist at State Bank of India, citing problems in supply of raw materials from China for pharmaceuticals and other exports. A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the Reserve Bank of India hold off on further cuts in interest rates for now, while keeping its monetary stance accommodative. Finance Minister Nirmala Sitharaman has said some signs of green shoots were visible in the economy as the government has eased bottlenecks for consumer and industry bank loans, while expanding spending on infrastructure. But analysts remained doubtful. Goldman Sachs cut its growth forecast to 4.9% for the March quarter from earlier estimate of 5.4%. "Despite the downward revision, we believe the risks to our growth forecast are still tilted to the downside, given the risk aversion in the domestic financial sector, the continued weakness in rural demand," Goldman Sachs, said in a note on Wednesday.

India's GDP seen growing at 4.7% in December quarter

The International Monetary Fund (IMF) on Monday lowered growth estimate for India to 4.8% for FY20, citing stress in the non-bank financial sector and weak rural income growth as the major factors for the downward revision.

IMF lowers India growth estimate to 4.8% for FY20

Indian states face difficulties in reducing deficits, challenging the country's ability to meet medium-term fiscal consolidation goals as economic growth slows, Moody's Investors Service said in a new report released on Wednesday.

"Indian states do not generate sufficient own source revenue to cover their spending needs. The introduction of <a href="https://www.wionews.com/business-economy/gst-revenue-collections-for-june-total-rs-99939-crore-232065">Goods and Services Tax </a>(GST) in 2017 has further increased states' reliance on central government transfers," said Moody's Assistant Vice President and Analyst Gjorgji Josifov.

"As slowing growth and continued infrastructure spending are likely to keep state-level deficits elevated, we expect the central government will continue to face challenges in achieving its fiscal consolidation targets," added Josifov.

The implementation of the GST in July 2017 replaced many indirect taxes levied by the states with centralised GST rates. As a result, states are now more reliant on the central government for revenue, with the central government accounting for almost half their revenue.

Meanwhile, persistent spending pressures and slowing economic growth will keep state-level deficits high at about 3 per cent of GDP for the fiscal year ending March 2020. Coupled with the projected 3.7 per cent deficit for the central government, this will bring the general government deficit to about 6.7 per cent.

Without policy changes, Moody's expects states' deficits to stay around current levels which will continue to challenge general government (combined central and state) fiscal consolidation.

As a percentage of GDP, states' outstanding debt will remain around 25 per cent in fiscal 2019 and 2020. To achieve the Fiscal Responsibility and Budget Management (FRBM) Act baseline scenario of debt-GDP reaching 20 per cent by 2024-25 will require significant expenditure cuts and much higher revenue growth.

Moody's report forms part of its continuing research on the debt and finances of India's states and local governments, and the central government's efforts to reduce deficits and debt.

Indian states face difficulties in reducing deficits, challenging the country's ability to meet medium-term fiscal consolidation goals as economic growth slows, Moody's Investors Service said in a new report released on Wednesday.

Indian states face difficulties in reducing deficits, challenging the country's ability to meet medium-term fiscal consolidation goals as economic growth slows, Moody's Investors Service said in a new report released on Wednesday. "Indian states do not generate sufficient own source revenue to cover their spending needs. The introduction of Goods and Services Tax (GST) in 2017 has further increased states' reliance on central government transfers," said Moody's Assistant Vice President and Analyst Gjorgji Josifov. "As slowing growth and continued infrastructure spending are likely to keep state-level deficits elevated, we expect the central government will continue to face challenges in achieving its fiscal consolidation targets," added Josifov. The implementation of the GST in July 2017 replaced many indirect taxes levied by the states with centralised GST rates. As a result, states are now more reliant on the central government for revenue, with the central government accounting for almost half their revenue. Meanwhile, persistent spending pressures and slowing economic growth will keep state-level deficits high at about 3 per cent of GDP for the fiscal year ending March 2020. Coupled with the projected 3.7 per cent deficit for the central government, this will bring the general government deficit to about 6.7 per cent. Without policy changes, Moody's expects states' deficits to stay around current levels which will continue to challenge general government (combined central and state) fiscal consolidation. As a percentage of GDP, states' outstanding debt will remain around 25 per cent in fiscal 2019 and 2020. To achieve the Fiscal Responsibility and Budget Management (FRBM) Act baseline scenario of debt-GDP reaching 20 per cent by 2024-25 will require significant expenditure cuts and much higher revenue growth. Moody's report forms part of its continuing research on the debt and finances of India's states and local governments, and the central government's efforts to reduce deficits and debt.

Indian states face challenges in reducing deficits, constraining government fiscal consolidation: Report

India's power demand fell 13.2 per cent&nbsp;in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

The country needs electricity to fuel its expanding economy but a&nbsp;third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024.

India's June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown.

"The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said N.R. Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi.

Consumption in heavily industrialized states such as Maharashtra and Gujarat led the decline. Last month, power demand in Maharashtra declined by 22.4 per cent&nbsp;and in Gujarat by 18.8 per cent, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed.

India's infrastructure output in September contracted 5.2 per cent, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months.

Its fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years.

Economists said India's growth could fall as low as 5.8 per cent, dragged down by a slump in consumer demand and investment. India's central bank last month cut its growth forecast by 80 basis points for the year ending March 2020 to 6.1 per cent.

Slower economic activity has resulted in a fall in sales of everything from cars to cookies, with some large scale industries resorting to large job cuts.

India's automobile sector, for instance, has cut hundreds of thousands of jobs, citing an unprecedented decline in sales.

"Now we are talking about a sub 6 per cent&nbsp;growth for the current fiscal year," Bhanumurthy told Reuters.

The government, which has not revised its growth forecast of 7 per cent&nbsp;for the financial year, is expected to release data on economic growth by the end of this month. Information on electricity demand prior to January 2006 is not publicly available.

Populous states such as Uttar Pradesh (UP) and Madhya Pradesh (MP) saw demand fall - with MP's electricity requirement falling by over a fourth and UP seeing a decline of 8.3 per cent.

India's power demand fell 13.2 per cent in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

India's power demand fell 13.2 per cent in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy. The country needs electricity to fuel its expanding economy but a third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024. India's June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown. "The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said N.R. Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi. Consumption in heavily industrialized states such as Maharashtra and Gujarat led the decline. Last month, power demand in Maharashtra declined by 22.4 per cent and in Gujarat by 18.8 per cent, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed. India's infrastructure output in September contracted 5.2 per cent, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months. Its fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years. Economists said India's growth could fall as low as 5.8 per cent, dragged down by a slump in consumer demand and investment. India's central bank last month cut its growth forecast by 80 basis points for the year ending March 2020 to 6.1 per cent. Slower economic activity has resulted in a fall in sales of everything from cars to cookies, with some large scale industries resorting to large job cuts. India's automobile sector, for instance, has cut hundreds of thousands of jobs, citing an unprecedented decline in sales. "Now we are talking about a sub 6 per cent growth for the current fiscal year," Bhanumurthy told Reuters. The government, which has not revised its growth forecast of 7 per cent for the financial year, is expected to release data on economic growth by the end of this month. Information on electricity demand prior to January 2006 is not publicly available. Populous states such as Uttar Pradesh (UP) and Madhya Pradesh (MP) saw demand fall - with MP's electricity requirement falling by over a fourth and UP seeing a decline of 8.3 per cent.

India's electricity demand falls at fastest pace in at least 12 years

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