Weakness in private consumption, mfg output and business investment have been attributed for this reduction in GDP growth forecast
Mumbai : The Asian Development Bank (ADB) on Tuesday lowered India’s growth forecast to 7 per cent owing to weakness in private consumption, manufacturing output and business investment. “ADB forecasts growth to reach 7 per cent for 2017-18, a 0.4 percentage point decline from the April estimates, while the outlook for 2018-19 is now at 7.4 per cent from the previous 7.6 per cent projection,” the multilateral funding agency said in an update to its flagship annual economic publication — Asian Development Outlook (ADO) 2017.
Growth in the first quarter of the current fiscal slowed down to 5.7 per cent, as growth in private consumption and industry declined compared to previous quarters.
Fixed capital formation grew by a sluggish 1.6 per cent, indicating a sharp slowdown in private investment. Government consumption, however, continued to buoy economic activity. “Indian growth moderated in the first quarter of the current fiscal year due to lingering effects from note ban and GST regime.” it said.
