ADB lowers India’s growth by 40 basis points to 7.2% in fiscal year 2019-20

Asian Development Bank (ADB) has recently released its flagship publication Asian Development Outlook 2019. In its report, ADB has lowered India’s growth by 40 basis points to 7.2% in fiscal year 2019-20. Still, it will be fastest growing economy in the world. The report mentioned that recent policy measures by the Government of India (GoI) to improve the investment climate and boost private consumption and investment will help India to lift economic growth in the next two fiscal years. The growth rate in FY 2020-21 is likely to be 7.3%. India’s growth slowed from 7.2% in fiscal 2017 to 7% in 2018, with weaker agricultural output and consumption growth curtailed by higher global oil prices and lower government expenditure. The report added that sub-region wise, southeast Asia will sustain growth at close to 5% this year and the next one.