World Bank has cut down India GDP growth to 6% for fiscal year 2019-20

World Bank has cut down India GDP growth to 6% for fiscal year 2019-20. 

However World Bank forecast that India GDP growth for 2020-21 will be 6.9% plus.

Recently RBI had cut down India GDP growth estimate to 6.1% for fiscal year 2019-20.

Moody's forecast that India GDP growth will be 5.8% for fiscal year 2019-20.

However recent decision by India FM Nirmala Sitaraman 2-3 related to cutting down corporate taxes will show fruits in next 2 to 3 years. 

Now India corporate taxes are less than most countries in Asia. 

Already many global companies started to keep huge investments in India. Obviously this will create more work for more people. So consumption will raise in India as more money flows in economy.

India FM Nirmala Sitaraman decision to cut down corporate tax actually will boost India GDP growth in next 2 to 3 years and it is sustainable growth.

Generally whichever the country attracts more companies from other countries will always be in good position with respect to GDP. 

By cutting down corporate taxes, India kept one step ahead to attract foreign companies. 

Still India has to keep steps by improving ease of doing business in India.

Let us give example that India has to construct office spaces to give it to lease on long term basis for companies. So construction time will come down. They will start business operations. If they want to expand then they will select other spaces available for lease or they will buy new offices as per their requirement. 

Government should take measures so that power supply to companies will be available at less cost with long term guarantee. May be government can assist companies to setup solar installations which are having more than 1000 employees.

Sunday, October 13, 2019 - 12:45 UTC