NEW DELHI: The Asian Development Bank (ADB) on Wednesday trimmed its forecast for India's economic growth in 2019-20 to 5.1 per cent 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 per cent in 2019-20 and 7.2 per cent in the year thereafter. "India's growth is now seen at a slower 5.1 per cent 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 that growth should pick up to 6.5 per cent in the next fiscal year with supportive policies.