The bank, however, increased Asia's growth forecast to 5.9 per cent from 5.7 per cent.
The Asian Development Bank (ADB) has lowered India’s growth forecast for the year 2017 to 7 per cent from its earlier estimate of 7.4 per cent.
In its Asian Development Outlook 2017, the reasons cited were “short-term disruptions” such as last year’s demonetisation and the recent implementation of the goods and services tax (GST).
The bank, however, increased its growth forecast for Asia from 5.7 per cent to 5.9 per cent.
The upward trend of the Asian economy is because of China’s better-than-expected performance coupled with a revival in the global trade and the developed economies witnessing growth.
The report expects “medium-term benefits” from GST for India.
The country’s 2018 growth is estimated to be 7.4 per cent, lower than the previously estimated rate of 7.6 per cent, it said.