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The World Bank says that a lack of credit and drop in private consumption have led to a gloomy growth outlook for India with a steep cut in growth rate for the current fiscal year and only a modest gain projected for the next year.

India's growth rate is forecast to be only 5 per cent for the current fiscal year, weighed down by a growth of only 4.5 per cent in the July-September quarter, according to the 2020 Global Economic Prospects report released on Wednesday.

"In India, [economic] activity was constrained by insufficient credit availability, as well as by subdued private consumption," the Bank said.

The growth rate is forecast by the Bank to pick up to 5.8 per cent in the next fiscal year and to 6.1 per cent in 2021-22.

India's growth rate was 6.8 per cent in 2018-19.

The 5 per cent growth rate projection for the current financial year is a sharp cut of 2.5 per cent from the 7.5 per cent forecast made by the Bank in January last year, toppling it from the rank of the world's fastest growing economy.

India's performance follows a global trend of lowered growth weighed down by developed economies.

The report estimated world economic growth rate to be only 2.4 per cent last year and forecast it to edge up 0.1 per cent to 2.5 per cent in the current year.

Even with the lower growth rate of 5 per cent in the current fiscal year and 5.8 per cent forecast for the next, India holds the second rank among large economies, behind only China with an estimated growth rate of 6.1 per cent for 2019 and 5.9 per cent this year.

The report blamed "weak confidence, liquidity issues in the financial sector" and "weakness in credit from non-bank financial companies" for India's slowdown.

The Bank predicated India's recovery to 5.8 per cent in the coming financial year for India but "on the monetary policy stance remaining accommodative" and the assumption that "the stimulative fiscal and structural measures already taken will begin to pay off."

It also warned that sharper-than-expected slowdown in major external markets such as United States and Europe, would affect South Asia through trade, financial, and confidence channels, especially for countries with strong trade links to these economies."

The Bank said that the growth of advanced economies was 1.6 per cent last year and "is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing."

In contrast the growth of emerging market and developing countries is expected to accelerate from 3.5 per cent last year to 4.1 per cent this year, the report said.

In South Asia, Bangladesh is estimated to have the highest growth rate of 7.2 per cent in the current fiscal year, although down from 8.1 per cent last fiscal year.

But its higher regional growth rates are coming off a lower base with a per capital gross domestic product of $1,698 compared to $2,010 for India.

Bangladesh is expected to grow by 7.3 per cent in the next financial year.

Pakistan's growth rate is estimated at only 2.4 per cent in the current fiscal year and is projected to rise to 3 per cent in the next, according to the Bank.

The Bank blamed monetary tightening in Pakistan for a sharp deceleration in fixed investment and a considerable softening in private consumption for the fall in growth rate from 3.3 per cent in the 2018-19 fiscal year.

Sri Lanka's growth rate was estimated to be 2.7 per cent last year and forecast to grow to 3.3 per cent this year.

Nepal grew by an estimated 6.4 per cent in the current fiscal year and will rise to 6.5 per cent in the next.

Feb 28: Market benchmark Sensex plummeted over 1,100 points, wiping off over Rs 5 lakh crore investor wealth, in opening session on Friday amid a massive selloff in global equities as rising coronavirus cases outside China stoked fears of a pandemic that could dent world growth.

The 30-share index sank 1,100.27 points, or 2.77 per cent, to 38,645.39, while the NSE Nifty cracked 329.50 points, or 2.83 per cent, to 11,303.80.

All Sensex components were trading in the red, led by losses in Tata Steel, Tech Mahindra, Infosys, Mahindra and Mahindra, Bajaj Finance, HCL Tech and Reliance Industries.

In the previous session, the Sensex settled 143.30 points, or 0.36 per cent, lower at 39,745.66, and the Nifty fell 45.20 points or 0.39 per cent to end at 11,633.30.

According to analysts, till last week the market was of the view that coronavirus was going to have minimum impact on global economy as situation in China was being contained. But the increase in the number of new cases is changing the view and investors are worried about an intense slowdown.

Further, incessant selling by foreign investors is also spooking domestic market participants, traders said.

On a net basis, foreign institutional investors sold equities worth Rs 3,127.36 crore on Thursday, data available with stock exchanges showed.

Stock exchanges in Shanghai, Hong Kong, Seoul and Tokyo plunged up to 4 per cent in their morning sessions.

On Wall Street, the Dow Jones Industrial Average dropped 1,190.95 points, its largest one-day point drop in history, bringing its loss for the week to 3,225.77 points, or 11.1 per cent.

The S&P 500 has now plunged 12 per cent from the all-time high it set just a week ago.

World oil prices too tumbled by more than 4 per cent overnight as traders fretted about the impact of spreading coronavirus on crude demand, particularly from key consumer China.

Brent crude oil futures fell another 2.47 per cent to USD 50.45 per barrel early in the day.

The rupee depreciated 28 paise to 71.89 against the US dollar in morning session.

Mangaluru, Jan 15: The coastal city of Mangaluru witnessed a historic event as a sea of humanity converged at the Shah Gardan Maidan in Adyar-Kannur to register their protest against the Citizenship (Amendment) Act (CAA), National Register of Citizens (NRC) and National Population Register (NPR) besides the “categorical mistreatment” of Muslim community at the hands of the police across the country including in Mangaluru.

The protest is jointly being organised by the various Muslim organisations of Dakshina Kannada and Udupi district under the leadership of Muslim Central Committee. 

The main staged is named after Shaheed Jaleel Kudroli and Shaheed Nausheen, who were ruthlessly gunned down by the police during a chaos that erupted on December 19 in the city due to police batten charge against people during a minor protest against NRC. 

Even thought the police had banned public transport and blocked the highway to reduce the number of protesters, around one-and-a-half lakh people had reached the venue when the historic meeting commenced at 2:30 p.m. By 4 p.m. the number of protesters crossed 2 lakh, according to the organisers.

Both sides of the highway were filled with those who came to witness the rally and traffic went haywire along a five-kilometre stretch of the road. The people who took part in the rally were seen waving national flags.

The protest rally was inaugurated by Udupi Khazi Bekal Ibrahim Musliyar. Dua was offered by Dakshina Kannada Khazi Twaka Ahmed Musliyar. 

Addressing the protesters, former IAS officer and activist Kannan Gopinathan alleged that the Centre wants to create fear among all sections of people and silence them. Society began to protest when the government crossed the limits and put curbs on democratic freedom, he claimed.

The Centre thought that they can get away with CAA and NRC. However, people have realised the truth and have started coming out onto the streets, Gopinathan added.

Activist Harsh Mander said the theme of the protest against the CAA and NRC is "national flag in one hand, Constitution is another and people will march forward with love in their hearts”.

“The fight against NRC is the fight for the protection of our Constitution. The BJP is using NRC as a weapon to divide the people after Article 370 and Ram Mandir construction," he said and warned the Centre: “The more you try to divide us, the stronger and united we’ll be”

Human rights activist Shivasundar said the "chowkidar" appointed by the people is now asking them whether they are the real owners of their houses.

The BJP only delivered hollow promises which is evident from the rising unemployment, fall in GDP, farmers suicides and the economic slowdown, he alleged.

MLA UT Khader, MLC BM Farooq, former MLA Mohiyuddin Bava, Muslim central committee president KS Mohammed Masood, Ullal Qazi Fazal Koyamma Tangal, Dakshina Kannada district Wakf committee president UK Monu Kanachur, Sunni Youth Federation state general secretary Abdul Rashid Zaini and Karnataka Samastha Mushavara state secretary UK Abdul Aziz Darimi were present among others.

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