ADB sharply cuts India’s GDP growth forecast to 6.5 pc for FY20
PTI, Sep 25, 2019, 10:25 AM IST
New Delhi: The Asian Development Bank on Wednesday sharply cut India’s growth forecast to 6.5 per cent for the current fiscal, weighed down by the GDP growth rate dipping to a six-year low in the first quarter.
“India’s growth forecast for fiscal year 2019 (FY20) is lowered to 6.5 per cent after growth slowed markedly to 5 per cent in the first quarter, April-June,” said the Asian Development Outlook (ADO) 2019 Update.
In its supplement to the ADO in July, the Manila-headquartered multi-lateral funding agency cut the country’s GDP growth estimate to 7 per cent for 2019-20 on the back of fiscal shortfall concerns.
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, it said.
“India is expected to rebound to 7.2 per cent growth in fiscal 2020 (FY21) and join most other subregional countries in performing at or near their ADO 2019 growth forecasts for next year,” the ADB Outlook said.
As per the latest ADO, South Asia’s growth momentum has softened.
For the region, the growth forecasts are lowered to 6.2 per cent for 2019 and 6.7 per cent for 2020, it said.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Reverse migration has begun, says FM Nirmala Sitharaman
Markets sustain winning streak — Sensex jumps over 560 points, Nifty tops 22,300-level
Sensex climbs 640 points, Nifty tops 22,300-level in early trade
Insurance regulator IRDAI abolishes age restriction on health insurance product
Elon Musk says India visit delayed due to Tesla obligations
MUST WATCH
Latest Additions
Intense heat wave in eastern states spreads to south India
Sexual harassment case against ex-WFI chief: Court to pass order on closure report on May 20
Modi is ‘Vish Guru’, never respected ‘magalsutra’: Jairam Ramesh
TCS World 10K: New starting point, meticulous arrangements in place
Congress complains to EC, alleges ‘misinformation’ by BJP about manifesto