The Asian Development Bank (ADB) trimmed its forecast for India’s economic growth in 2019-20 to 5.1% 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% in 2019-20 and 7.2% in the year thereafter.
“India’s growth is now seen at a slower 5.1% 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% in the next fiscal year with policies.
(With Agency Inputs)