InvestorQ : Is it correct that SBI Research has projected GDP growth at 1.1% for the fiscal year 2020-21? Will that not lead to a huge correction in the stock markets?
Lavanya Subramanian made post

Is it correct that SBI Research has projected GDP growth at 1.1% for the fiscal year 2020-21? Will that not lead to a huge correction in the stock markets?

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ishika Banerjee answered.
6 months ago
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Firstly, that is the projection of SBI Research. They have projected 4.1% for fiscal 2019-20 and 1.1% for fiscal 2020-21. That means the fourth quarter GDP growth for Mar-20 could be around 2% at best. This will surely impact markets but that appears to be largely factored into the market calculations. The good news is that India could actually end up with a current account surplus for the fiscal year 2021. With economic growth at 1.1% for FY21, oil prices are likely to remain under $35/bbl. Combined with robust remittances from the Middle East and other NRIs, the CAD should get converted into a current account surplus. That could be the good news in the midst of all this gloom over the growth story.

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