ADB paints gloomy picture; cuts India FY20 GDP growth forecast to 6.5%

Abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions, ADB said.

The Asian Development Bank on Wednesday sharply cut India's growth forecast to 6.5 per cent for the current financial year, weighed down by the GDP growth rate dipping to a six-year low in the first quarter.

"India's growth forecast for financial year 2019 (FY20) is lowered to 6.5 per cent after growth slowed markedly to 5 per cent in the first quarter, April–June," said the Asian Development Outlook (ADO) 2019 Update.

In its supplement to the ADO in July, the Manila-headquartered multi-lateral funding agency cut the country's GDP growth estimate to 7 per cent for 2019-20 on the back of