Asian Development Bank (ADB) has reduced the country’s gross domestic product (GDP) growth rate for the current fiscal. According to ADB, India’s GDP can be 7 percent in 2019-20 Earlier in the same year in April this year ADB had released statistics of India’s economic growth rate. In these figures, the GDP growth estimate was reduced to 7.2 percent, which was 7.6 percent before that. Understand easy language, it is the third consecutive time when ADB has reduced GDP growth estimates.
ADB said in its Asian Development Outlook -2019, “Given the concerns related to the fiscal deficit of FY 2018-19, India’s economic growth is estimated to be 7 percent in 2019-20 and 7.2 percent in 2020-21. This is less than the estimates of ADB in April. “However, ADB has upheld the pace of growth in the South Asian region. The economic growth rate of this region is estimated to be 6.6 percent in 2019 and 6.7 percent in 2020.
These figures of ADB have come at a time when the Indian government is working on the target of $ 5 trillion economy by 2025. The government says that to achieve this, the country needs 8% growth in GDP. While presenting the economic survey recently, Finance Minister Nirmala Sitharaman had said that India needs GDP growth by 8% for the economy of 5 trillion dollars by 2025.
However, the survey estimated the 7 percent GDP growth for 2019-20. While the recent report of the International Monetary Fund (IMF) has projected that India’s GDP will increase at 7.3 percent in 2019