ADB: India set for 6.7% growth this fiscal
Q. ADB has forecasted India's current economic growth forecast for this fiscal by 0.3% to ____.- Published on 15 Dec 17
a. 6.6 percent
b. 6.7 percent
c. 6.8 percent
d. 6.9 percent
ANSWER: 6.7 percent
The Asian Development Bank (ADB) in its Asian Development Outlook Supplement has lowered India's economic growth forecast for current fiscal i.e. FY 2017-18 by 0.3% to 6.7% from earlier 7%.
The reasons cited for this downward revision of growth forecast of largest economy South Asia are lingering effect of demonetisation, transitory challenges to Goods and Services Tax (GST) and weather-related risks to agriculture.ADB Forecast: Know More
- ADB has also revised downwards India's gross domestic product (GDP) outlook for next fiscal beginning from March 2018 to 7.3% from 7.4% mainly due to rising global crude oil prices and soft growth in private sector investment.
- However, it expects growth to pick up in remaining two quarters of FY 2017-18 as Government is implementing measures to ease compliance with new GST as well as bank recapitalisation.
- Inflation in India has remained subdued in first seven months of 2017-18, averaging 2.7%, with low food prices and demand still not out of woods because of demonetisation.
- However, inflation had picked up since July 2017 on price uptick for food, especially pulses and vegetables. Fuel prices also inched up in response to rising global crude oil prices.
- It has now projected inflation to average 3.7% in 2017-18, somewhat below the 4% earlier forecast.