The exit strategy for India’s business sector is set to change in the coming months as the country tries to address a growing economy in its own right.
According to the World Bank’s latest India Business Development Indicators, the country’s economy will contract for the fourth straight quarter by 2019, and that contraction will be worse than the overall economy’s contraction in the third quarter.
India’s economic growth is expected to be around 4.6 per cent in 2019-20.
That will not be enough to meet the government’s ambitious target of 6.5 per cent growth.
However, the World Economic Forum (WEF) has predicted that the country could be able to expand by 5.6 percentage points to 5.9 per cent over the same period, and the country is likely to witness a slowdown in the fourth quarter.
The WEF has forecast a 6.1 per cent contraction for the current quarter, but the World Meteorological Organisation (WMO) has revised down its forecast of a 6 per cent slowdown in its first forecast.
India has not yet responded to the government and the business community’s demand for an exit strategy.
Business leaders are worried about a slowdown, saying that it would be a setback for India if it is not addressed.
The government’s decision to exit the current-account deficit will come as a huge shock to the financial sector, which has been in the grip of the worst crisis in its history.
The rupee is down 25 per cent against the dollar this year.
India is also facing a massive debt load of $1.3 trillion, and it has lost almost 70 per cent of its value in the past two years.