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“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.
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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.