Reviving Agriculture
India's agriculture sector is the backbone of the nation, directly or indirectly supporting nearly half the population.
Asian Development Bank (ADB) on Thursday lowered India’s GDP growth forecast to 7 per cent for the current year owing to the fiscal shortfall concerns.
“India is expected to grow by 7 per cent in 2019 (FY-2020) and 7.2 per cent in 2020 (FY-2021), slightly slower than projected in April because the fiscal 2018 outturn fell short,” ADB said in the July edition of its supplement -Asian Development Outlook (ADO) 2019.
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“Overall, the South Asian outlook remains robust, with growth projected at 6.6% in 2019 and 6.7% in 2020,” added the report.
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China is expected to grow by 6.3% in 2019 and 6.1% in 2020.
India’s growth forecast in the report is in line with the Economic Survey 2018-19 which Union Finance Minister Nirmala Sitharaman had tabled in Parliament in the Budget session. The survey had also predicted a 7 per cent GDP growth in FY20.
The survey had outlined strategic blueprint to achieve Prime Minister Narendra Modi’s vision for $5 trillion economy.
Earlier this month, credit rating agency Moody’s Investors Service had said that India has continued to face fiscal challenges, despite lower deficit target in the full Budget 2019-20.
In its analysis of the full Budget 2019-20, Moody’s had said that weak growth prospects for India will complicate the government’s fiscal consolidation efforts, weighing on the sovereign credit quality.
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