ADB forecasts Indian economy to grow at 7.3% in F.Y-2019

Highlights:

  • The Asian Development Bank (ADB) forecast that the Indian economy would grow at 7.3 % in F.Y-2019.
  • On the back of strong investment and GST stabilisation, the growth would improve to 7.6 % in F.Y-2020.
  • Besides, India’s funding would be scaled up to $4.5 billion in 2019.
  • According to the World Bank,India’s GDP is expected to grow at 7.3 % in the fiscal year 2018-19.
  • It has forecast the growth to hit 7.5 % in the following two years, attributing it to an upswing in consumption and investment.
  • ADB and World Bank growth projection for the current fiscal is a tad higher than the 7.2 % estimated by the Central Statistical Organization.
  • It is, however, lower than 7.4 % growth projected by the RBI.
  • In the recent issue of Asian Development Outlook (ADO), ADB had projected India’s growth for F.Y-2020 at 7.6 %.
  • ADB forecast current account deficit (CAD) to be around 2.5 % of GDP in the current fiscal, which will be financed by stable capital flows.