Question: Asian Development Bank has reduced the forecast of India’s GDP growth for the year 2017-18 to 0.4 percent from the earlier declared (April forecast) growth rate. India’s GDP growth is estimated-
- On September 26, 2017, ADB released its ‘Asian Development Outlook’ 2017 update.
- In this, the pre-declared estimate of India’s GDP growth rate has been reduced from 7.4 percent to 7 percent.
- The reason for the decline in GDP growth is the weakness in private consumption, manufacturing output and business investment.
- At the same time, the growth forecast for the year 2018-19 has been reduced from 7.6 percent to 7.4 percent.
- According to ADB, launch and implementation of new GST system has reduced consumer expenditure and commercial investment.
- For the current financial year, the growth of the estimated 7 percent by the bank is less than 7.1 percent of the previous year.
- The most important fact in terms of India’s growth forecasts is that the growth rate in the first quarter of the current financial year is estimated to be 5.7 percent.
- This is the minimum growth rate of the last three years in this context.