ADB cuts India's economic growth projection to 6.5% from 7% for FY20

Says a cut in corporation tax rate will boost private investments and global competitiveness

The Asian Development Bank (ADB) on Wednesday cut India’s economic growth forecast to 6.5 per cent for the current financial year (FY20), from its earlier estimate of 7 per cent. The move comes even as it said the measures announced by Finance Minister Nirmala Sitharaman on corporation tax rate cuts would boost private investments, including foreign direct investment (FDI) and the country’s global competitiveness.

Saying that some industries would relocate to India because of tensions between the US and China, the Manila-based multilateral agency advised policymakers to improve investment climate and liberalise regulations in the country to attract these units. 

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