Home / Knowledge / News / Textiles / India's growth may reduce to 7.3% in 2019: Moody's

India's growth may reduce to 7.3% in 2019: Moody's

16
Nov '18
Indian economy will expand by 7.4 per cent this year, but growth will slow down to 7.3 per cent next year as domestic demand shrinks on higher borrowing cost due to rising interest rates, according to Moody's Investors Service. The economy grew by 7.9 per cent in 2018 first half, reflecting post-demonetisation base effect, Moody’s said in a new report.

As borrowing costs have already increased on higher interest rates, Moody's expects the Reserve Bank of India to continue to steadily raise the benchmark rate through 2019, which will further dampen domestic demand.

These factors will limit the pace of the Indian economy's growth over the next few years, Moody's said in its ‘Global Macro Outlook 2019-20'.
The biggest downside risk to India's growth prospects is from concerns about its financial sector, a news agency reported citing the document.

Higher global oil prices compounded by sharp rupee depreciation raises the cost of households' consumption basket and will weigh on their capacity for other expenditures. Borrowing costs have already increased because of tightening monetary policy, it said.

Downside risks from a prolonged liquidity squeeze for non-bank financial institutions, which could lead to a sharper slowdown in their credit provision, remain, it added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 24th Jun 2021

Canada, Indonesia discuss Comprehensive Economic Partnership Agreement

Canada and Indonesia recently began negotiations over a Comprehensive ...

Pic: Shutterstock

Textiles | On 24th Jun 2021

US-PRC trade war jolts cost global value chains 3-5 yrs of growth: UN

Trade shocks induced by the tariff battle between the United States...

Pic: Shutterstock

Textiles | On 24th Jun 2021

Prime Content| South Korean textiles & clothing exports to China may rise: TexPro

South Korean textiles and clothing exports to China are expected to...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

Florian Heubrandner, Lenzing AG

Florian Heubrandner
Lenzing AG

Cannot see the world breaking away from cotton & polyester

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Shivaani Jain,

Shivaani Jain

Established in 2015, Once Upon A Trunk is a one-stop-shop with almost...

Jacques Prigneaux, EDANA

Jacques Prigneaux
EDANA

EDANA has been the leading global association and voice of the nonwovens...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by Aprajita Toor were born out of a deep desire to create...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search