A credit crunch among non-bank financial institutions (NBFIs), have increased the probability of a more entrenched slowdown.
A barrage of rate cuts from the RBI this year has done nothing concrete so far to revive a slowing Indian economy.
The move is estimated to result in Rs 1.45 lakh crore in revenue loss for the government during FY2019-20.
Lack of consumption is seen as one of the key factors pulling down growth.
GDP expansion will pick up to 6.2 per cent in the next financial year (2020-21) and to 6.7 per cent in the year after.
The gains in the rupee were capped by crude oil hitting the USD 60 per barrel mark, forex brokers said.
She assured international investors at an interaction session that the government was continuously working to bring reforms.
Asia’s third-largest economy is currently growing at its slowest pace in 6 years, expanding by just 5 pc in the April-June quarter.
A few companies, especially with exposure to the realty space, may face problems in the future, said HDFC's Aditya Puri.
The government should take these measures, although this may increase the fiscal deficit, said the Godrej Group Chairman.