ADB trims India's GDP growth forecast to 5.1 per cent in FY20
Asian Development Bank said growth should pick up to 6.5 per cent in the next fiscal year with supportive policies.
New Delhi: The Asian Development Bank (ADB) on Wednesday trimmed its forecast for India's economic growth in 2019-20 to 5.1 per cent saying consumption was affected by slow job growth and rural distress aggravated by poor harvest.
In September, ADB forecast India's GDP to grow 6.5 per cent in 2019-20 and 7.2 per cent in the year thereafter.
"India's growth is now seen at a slower 5.1 per cent in fiscal year 2019-20 as the foundering of a major non-banking financial company in 2018 led to a rise in risk aversion in the financial sector and a credit crunch.
"Also, consumption was affected by slow job growth and rural distress aggravated by a poor harvest," it said.
ADB said growth should pick up to 6.5 per cent in the next fiscal year with supportive policies.