DBS sees slow recovery for Indian economy, cuts GDP growth forecast to 5%

Weak growth has impacted revenue growth, compounding worries over an already weaker run-rate for tax revenues: DBS report.

Singapore's DBS Banking group has cut India's GDP growth forecast for this fiscal to 5 per cent from 5.5 per cent earlier and said that it will be a "slow climb to recovery" for the economy.

The financial services major said India's economy sharply decelerated this year as the financial sector reported stress.

"This slowdown is driven by an interplay of factors. This is part cyclical and part structural, which points to the likelihood of a slow climb to recovery in 2020," DBS in its report titled 'India annual outlook 2020' noted.

The Indian economy grew at the slowest pace in over six