Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


ADB slashes India’s GDP forecast to 6.7% from 7%

Author: IANS/Wednesday, December 13, 2017/Categories: Economy

ADB slashes India’s GDP forecast to 6.7% from 7%

New Delhi, Dec 13 - The Asian Development Bank (ADB) on December 13 lowered its Indian GDP forecast for the current financial year to 6.7% citing tepid growth in the first half, demonetisation and transitory challenges posed by implementation of GST.

The multilateral lender also revised its Indian Gross Domestic Product outlook for the 2018-19 fiscal down to 7.3% from 7.4%, largely due to the hardening of international crude oil prices and stagnant private sector investment in the country.

"Owing to tepid growth in the first half of 2017-18, the lingering effects of demonetisation in November 2016, transitory challenges of a new tax system, and some risks to agriculture stemming from a spotty monsoon in 2017, the economy is now expected to grow by 6.7%, slower than the 7% forecast in the Update," the ADB said in a supplement to its Asian Development Outlook (ADO).

In its September update, the ADB had downgraded India's growth projection for the current fiscal to seven per cent and also lowered its forecast for the next financial year to 7.4% from 7.6%.

GDP figures released by the Central Statistics Office here in November showed that, reversing five consecutive quarters of decline, growth in the second quarter ended September rebounded to 6.3% from 5.7% in first quarter. 

Meanwhile, a UN report released earlier this week in New York noted that subdued private investment in India, which has declined as share of GDP from 40% in 2010 to 30 per cent in 2017, coupled with the staggering bad loans accumulated in the Indian banking system, are major causes of concern.

"The anaemic performance of private investment remains a key macroeconomic concern. Gross fixed capital formation has declined from about 40% in 2010 to less than 30% in 2017," said the World Economic Situation and Prospects (WESP) 2018 prepared by the UN Department of Economic and Social Affairs (DESA).

The report said the global economy grew at an average of 3% in 2017, the highest growth rate since 2011, and is expected to remain steady at 3% in 2018 and 2019.

Print Rate this article:
No rating

Number of views (191)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free