Indian Economy To Grow At 7.2 Pc In FY 2019 Due To Rising Consumption: ADB

Indian economy to grow at 7.2 pc in FY 2019 due to rising consumption: ADB

Domestic demand is expected to remain the main driver as India's GDP picks up to grow at 7.2 percent in 2018-19 and 7.3 percent in 2019-20, the Asian News International, ANI, quoted the Asian Development Bank, ADB, as saying on Wednesday

NEW DELHI, (Pakistan Point News - 03rd Apr, 2019) Domestic demand is expected to remain the main driver as India's GDP picks up to grow at 7.2 percent in 2018-19 and 7.3 percent in 2019-20, the Asian news International, ANI, quoted the Asian Development Bank, ADB, as saying on Wednesday.

"The growth is forecast to pick up modestly to 7.2 percent in FY 2019 on revived rural consumption, continued growth in private investment in response to improved bank and corporate balance sheets, more competitive domestic firms and products under the Goods and Services Tax, and less drag from net exports," it said.

The Asian Development Outlook 2019 said growth slowed slightly in fiscal 2018 as expansion in agriculture and services slipped even though industry and investment strengthened.

The current account deficit widened but remained modest while inflation continued to be benign.

"Even with global headwinds, the outlook is for growth to edge up on strengthened domestic demand and bank and corporate fundamentals.

Inflation and the current account deficit should remain tame.

Enhancing export performance remains a key objective, which can be achieved by improving conditions for India's participation in global value chains," said the report.

"Domestic demand is expected to remain the main driver of growth."

"Growth is expected to inch up further to 7.3 percent in FY 2020 on dividends reaped from recent reforms to improve the business climate, strengthen banks, and alleviate agricultural distress," said ADB Chief Economist Yasuyuki Sawada in the report.