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ADB lowers India growth forecast to 5.4 pc for 2012-13

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 2:10 AM IST

"India's growth forecast is revised from 5.6 per cent to 5.4 per cent in fiscal year 2012 and from 6.7 per cent to 6.5 per cent in FY 2013," ADB said in its Supplement to the 'Asian Development Outlook (ADO) 2012'.

This is the fourth time that the bank has slashed growth estimates for India.

In the ADO released in April, ADB had projected India to grow at 7 per cent. But it lowered its estimate to 6.5 per cent in July and further to 5.6 per cent in the ADO October update citing falling global demand and impact of delayed monsoon on agricultural production.

As regards developing Asia, which comprises 45 nations, ADB lowered its 2012 growth forecast marginally to 6 per cent from 6.1 per cent. It also revised downward the growth outlook for 2013 to 6.6 per cent from 6.7 per cent projected earlier.

The growth performance in the developing Asia has remained subdued so far with downside developments slightly outweighing positive events, ADB said, adding "the region should pick up steam in 2013".

India's economy has slowed in the recent years on the back of both domestic and global factors.

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Economic growth fell to a nine-year low of 6.5 per cent in the 2011-12 fiscal and is expected to be 5.8 per cent in the current fiscal, according to RBI estimates.

In the first half of the current fiscal, the economy grew by 5.4 per cent, against 7.3 per cent in the same period last fiscal.

  

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First Published: Dec 07 2012 | 2:35 PM IST

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