Fitch Cuts India's Growth Forecast

The video discusses the downgrade of India's GDP growth forecast to 7.2% due to tighter liquidity conditions. Challenges in the banking and shadow banking sectors are highlighted, along with tensions between the Indian government and the Reserve Bank of India (RBI) over liquidity policies. The RBI maintains a 7.4% GDP growth forecast, citing lower oil prices as a positive factor. The video also covers similar liquidity challenges faced by other emerging markets like Turkey, South Africa, and Russia, and the impact of the US Federal Reserve's policies on these economies.

What is the primary reason for the downgrade in India's GDP growth forecast?

• Higher oil prices

• Increased government spending

• Improved export performance

• Tighter liquidity conditions

What is causing tension between the Indian government and the RBI?

• RBI's reluctance to ease liquidity conditions

• RBI's foreign exchange policies

• Disagreement over interest rates

• Government's fiscal deficit

What factor is the RBI citing as a positive influence on the economy?

• Increased foreign investment

• Stronger currency

• Lower oil prices

• Higher interest rates

Which countries, besides India, are facing tighter liquidity conditions?

• Germany, France, and Italy

• Japan, South Korea, and Indonesia

• Turkey, South Africa, and Russia

• Brazil, China, and Mexico

What is the potential outlook for emerging markets in 2019?

• Continued economic decline

• Increased inflation rates

• Improved growth outlook

• Stable economic conditions