New Delhi: In another sharp downgrade for the Indian economy’s outlook, the Asian Development Bank (ADB) has revised the estimate for India’s growth rate in the financial year 2019-2020 downwards to 5.1 percent from the previous forecast of 6.5 percent.
Further, it has also cut the estimate for the next fiscal, FY 2020-21 to 6.5 percent from 7.2 percent.
“In India growth has slowed substantially as a result of a credit crunch and weakening domestic demand,” said a statement by ADB. This is another addition to the series of downward revisions of India’s economic forecast for the ongoing fiscal.
The Reserve Bank of India (RBI) in its monetary policy announcement last week revised its FY2019-20 outlook to 5 percent from 6.1 percent.
The central bank said that the July-September GDP growth had turned out to be significantly lower than projected and various high-frequency indicators suggest that domestic and external demand conditions have remained weak.
The growth rate for the second quarter slumped to a 6-year low of 4.5 percent.