The Asian Development Bank (ADB) downgraded India’s GDP growth forecast for FY18 from 7.4% to 7%

The Asian Development Bank (ADB) has downgraded India’s GDP growth forecast to 7% from 7.4% for financial year 2017-18 due to weakness in private consumption, manufacturing output and business investment.
Further, in its latest Asian Development Outlook (ADO) outlook update, ADB has downgraded India’s growth projection for financial year 2018-19 to 7.4%, from the earlier forecast of 7.6% in July 2017. However, the multilateral lender stated that India continues its strong showing although demonetisation and implementation of the new Goods and Services Tax (GST) regime have dented consumer spending and business investment. These short-term disruptions are expected to dissipate allowing these initiatives to generate growth dividends over the medium term.