MUMBAI : The Reserve Bank of India (RBI) on Thursday slashed the growth forecast for fiscal 2019-20 to 5%, dampening the government’s hopes of becoming a $5 trillion economy by 2025.

The last Economic Survey had envisioned achieving this target in the next five years at an estimated 7% GDP growth rate.

In 2017, when India emerged as the sixth-largest economy in the world, it nursed hopes of taking the fifth place the next year. Not only did it miss the bus in 2018, the Indian economy slipped to the seventh rank, as per World Bank rankings.

Here’s a set of five trivia around the number 5 that may or may not have contributed to India’s failure to become the fifth-largest economy:

5.15% repo rate: The monetary policy committee (MPC) in its meeting on Thursday left the repo rate unchanged at 5.15%, contrary to expectations of a 25 basis point cut to revive growth in the economy. This pause comes at a time when the economy is in dire need of a boost to credit, demand and investments.

5 cuts: Prior to Thursday’s decision, policy rates have been cut in five consecutive meetings of MPC. The repo rate has come down five times, taking a 135 basis point cut from 6.5% in December 2018.

5% growth: GDP numbers released for the last quarter revealed a downward trend in real economic growth moving from 5% to 4.5%. The economy in a downswing is now fixated on this number, with RBI’s forecast for GDP growth this fiscal being estimated at an unsurprising 5%.

5%+ inflation: Consumer price inflation at 4.6% is set to see an upward revision, crossing the 5% mark. The headline inflation this quarter breached the medium-term target, settling at a 16-month high.

5th of the month: MPC meetings held on the 5th of the month since April 2018 have not seen a change in policy rates till now. No action on the rate in Thursday’s meeting adds to the trend. The last time the repo rate was changed at a meeting that was held on the 5th was on 5 April 2016.

India may have missed the targeted global fifth slot, but when the economy is back in the upswing, high-fives will certainly be all around.

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