Leading indicators point to sustained weakness in India

MUMBAI- In its monthly research report on India, ANZ Bank says economic indicators point to broad-based weakness in the economy, warranting a downgrade of its previous growth forecasts.

ANZ has lowered its GDP growth forecast to 6.9% for FY19 (ending March 2019) and to 6.8% for FY20 (from 7.0% and 7.1%, previously). For Q4 FY19, it is estimating GDP growth to slow to 6.2% y/y compared with 6.6% in the previous quarter.

 "At the component level, general economic activity and consumption-related indicators have materially weakened, whereas investment-related indicators are holding up relatively better," the report says.

"We believe that a broad-based response both from policy rate cuts and a further easing of liquidity conditions is essential to stem this slowdown."  www.live.anz.com (ATI).