ADB cuts India’s growth forecast for FY’20

India’s growth forecast has been sharply cut by the Asian Development Bank to 6.5% for the ongoing fiscal year. This has been the result of gross domestic product growth rate dipping to a six-year low of 5% in the first quarter. As far as South Asia’s growth is concerned, forecasts are lowered to 6.2% for 2019 and 6.7% for 2020.

However, the report remained optimistic about India’s future growth prospect: “India is expected to rebound to 7.2 percent growth in fiscal 2020 [FY21] and join most other subregional countries in performing at or near their ADO 2019 growth forecasts for next year”.