ADB retains Indian growth forecast at 7.3% for FY19

New Delhi: Asian Development Bank Wednesday said it has retained its India growth forecast at 7.3 percent for current fiscal and 7.6 percent in the following financial year.

India is maintaining growth momentum on rebounding exports and higher industrial and agricultural output, ADB said in its Asian Development Bank Outlook Supplement.

"India saw GDP growth moderate to 7.1 percent in Q2 of FY2018 (ending 31 March 2019) from 8.2 percent in Q1, for 7.6 percent growth in the first half," ADB said.

The slowdown came mainly from weak food prices, dampening rural consumption, higher oil prices delivering a negative shock in the terms of trade, and rising costs for raw materials.

"Nonetheless, growth forecasts of 7.3 percent for 2018-19 and 7.6 percent for 2019-20 are retained from the update despite some downside risks," ADB said in the supplement.