December 2019 \ Business & Investment \ HOUSING AND ECONOMY
Crisil revises India’s growth outlook from 6.3% to 5.1%

“There is also an atypical brake at work... the clean-up of the financial sector happening after almost 20 years. That can stretch the slowdown, particularly because policy space for counter-cyclical action is limited with tax revenue way behind target,” Crisil noted. “Recent data shows that government has decided to speed up spending to support the economy. It now becomes important to fast-track non-tax revenue generation through divestments and asset monetisation to keep the fiscal deficit under check. Monetary policy transmission has also been weak, and financial sector stress and risk aversion have adversely impacted credit flow.

 




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