Rating agency CARE Ratings on Tuesday said it is likely to revise gross domestic product (GDP) growth for FY20 after growth slipped to an over six-year low of 5 percent in the June quarter of 2019-20.
In an interview to CNBC-TV18, Adan Sabnavis, chief economist, said he is of the view that growth is expected to recover gradually, "The measures announced by the government would help business sentiment but may not translate into GDP growth recovery, much more is required to be done for that."
"However, the government seems to be committed towards Fiscal Responsibility and Budget Management (FRBM) path and it looks unlikely that there would stray from it and come out with a fiscal stimulus," said Sabnavis.
Talking about private final consumption, he said, "The slowdown started a couple of years back. It started with demonetisation and GST. All these factors contributed to a continuous slowdown in consumption and what we are seeing today is a manifestation of the same. This slowdown is also getting reflected in investment numbers as there is less incentive for one to invest when the overall demand is slack."