ADB trims India’s GDP growth forecast to 6.5% for FY20

TIL Desk/Business/New Delhi/ The Asian Development Bank on Wednesday sharply lowered India’s growth forecast from 7.2 per cent to 6.5 per cent for the current fiscal, though has it indicated that the country will grow faster than China.

The multi-lateral lending agency in its Asian Development Outlook Update for 2019 cut the growth projection for India, which recorded an over six-year low growth of 5 per cent in April-June quarter this fiscal.  “India’s growth forecast for fiscal year 2019 is lowered to 6.5 per cent after growth slowed markedly to 5 per cent in the first quarter, April-June.

Abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions, stress in the rural economy, and a weakening external outlook,” the agency said.  However, India is expected to rebound to 7.2 per cent growth in fiscal 2021 and join most other sub-regional countries in performing at or near their ADO 2019 growth forecasts for next year, it added.