NEW DELHI (AP) — India’s government said yesterday the economy is expected to grow at seven per cent in 2019-20, up from a five-year low of 6.8 per cent in the past year.
Finance Minister Nirmala Sitharaman presented the economic report in Parliament a day before unveiling the annual federal budget. India’s financial year runs April-March.
Economic growth slowed to a five-year low of 5.8 per cent in the January-March quarter with consumer spending and corporate investment faltering. Declining industrial output and automobile sales also raised fears of a deeper slowdown.
The ministry attributed the slowdown to national elections and said higher economic growth is likely, with oil prices expected to decline in coming months.
Prime Minister Narendra Modi is facing strong pressure to help keep growth robust and create jobs for India’s 1.3 billion people.