India to grow 7.2% for FY’20: ADB

Why is it in the news
  • The Asian Development Bank (ADB) has lowered India’s growth forecast for 2019-20 to 7.2% from 7.6% estimated earlier.
  • The lowering of projections comes at the backdrop of moderation in global demand and likely shortfall in revenue on the domestic front.
More in the news
    • The last fiscal year, ADB has cut the growth estimate to 7% from 7.3% projected in December last year.
    • Findings of ADB:
      (1) Growth slowed from 7.2% in fiscal 2017 to 7% in 2018 with weaker agricultural output and consumption growth curtailed by higher global oil prices and lower government expenditure.
      (2) Growth is expected to rebound to 7.2% in 2019 and 7.3% in 2020 as policy rates are cut and farmers receive income support, bolstering domestic demand.
      (3) There is uncertainty arising out of global trade tensions, and the weak economic outlook in industrial countries.
        • Asian Development Bank (ADB):
        • The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character.
        • It aimed to foster economic growth and cooperation in one of the poorest regions in the world.
        • ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
        • It is modeled on the World Bank.
        • It has similar weighted voting system where votes are distributed based on member's capital subscription.
        • India has about 6% voting rights (4th highest, Japan highest and USA second highest)
        • ADB is composed of 67 members, 48 of which are from the Asia and Pacific region.
        • It is Headquartered in Manila, Philippines
      Source
      Indian Express, ADB.
      Posted by Jawwad Kazi on 4th Apr 2019
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