New Delhi: India's GDP growth rate in Jul-Sep may fall to 4.0-4.5%, said Anantha Nageswaran, a part-time member of the Prime Minister's Economic Advisory Council.
Nageswaran added it may take "some time" for the GDP growth to reach 6% on an annual basis.
India's GDP growth slumped to a 25-quarter low of 5.0% in Apr-Jun. And, while the government has taken several steps to arrest the falling growth, including a cut in the corporate tax rate, high-frequency indicators have not shown any improvement.
Economists see GDP growth falling further in Jul-Sep, data for which will be released later today. According to a poll by Cogencis, GDP growth is likely to decline to 4.6% in Jul-Sep.
The Reserve Bank of India has pegged GDP growth for 2019-20 (Apr-Mar) at 6.1%. However, the central bank's forecast is likely to be undershot, with its projection of 5.3% for Jul-Sep well above the consensus estimate.
Speaking earlier today at the same event, Chief Economic Advisor K.V. Subramanian had said that pushing the pedal on structural reforms was needed for India to become a $5-trln economy by 2024-25. Speaking on the matter, Nageswaran said India's nominal GDP needed to grow by 14% every year to meet the government's target of becoming a $5-trln economy by 2024-25.
