The RBI on Thursday kept repo rate unchanged at the current 5.15% level but revised GDP growth projection for the current financial year 2019-20 to 5%
The picture is much worse than the 4.5% headline number
While there have been a rash of growth estimate cuts, including a 0.70 percentage points reduction by the RBI last month to 6.1%, the Japanese brokerage's estimate is so far the lowest
Growth is expected to gradually recover to 6.9 per cent in 2020-21 and to 7.2 per cent in the following year, it said
Abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions, ADB said.
The medium-term fiscal policy statement, tabled as part of the Union Budget 2019-20, forecasts nominal GDP for 2019-20 to grow 11 per cent year-on-year
It said the rising global trade tension will also have an adverse impact on exports
'Growth headwinds swiftly turn attention to the likely policy response. We expect monetary policy to do much of the heavy lifting, given limited fiscal leeway'
In the January-March quarter, India's gross domestic product (GDP) grew at the fastest pace in seven quarters at 7.7%