Growth projection slashed to 5% for current fiscal

Mumbai: The RBI sharply lowered the growth forecast for the current financial year to 5% from the earlier estimate of 6.1% on account of weak domestic and external demand.

India's economic growth according to government data has slipped to over six-year low of 4.5% in the second quarter of the current fiscal mainly due to contraction in manufacturing sector output.

"Real GDP growth for 2019-20 is revised downwards from 6.1% in the October policy to 5.0%, 4.9-5.5% in H2 (this fiscal) and 5.9-6.3% for H1(2020-21)," RBI said in its fifth bi-monthly monetary policy review.

A delay in revival of domestic demand, a further slowdown in global economic activity and geo-political tensions are downside risks, it said.

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