RBI sharply cuts FY20 GDP growth forecast to 6.1% amid economic slowdown

The drop in the central bank's outlook is more glaring if the entire rate cut cycle is considered

Taking cognisance of the worsening slowdown, the Reserve Bank of India (RBI) on Friday cut its economic growth forecast for 2019-20 to 6.1 per cent, a huge downward revision of 80 basis points (bps) from the projection it made in the August policy meeting. If this turns into reality, India’s gross domestic product (GDP) growth will be the lowest since 2012-13, which could severely hit job creation and income growth in the near term. To achieve even this target, the economy will need to grow at 7 pet cent in the second half of the financial year. 

The drop in