ADB said growth in Indian GDP
fell to 3.1 per cent in the last quarter of 2019-20, its slowest since early 2003.
Economic growth slowed to 4.2 per cent in the entire FY20 as both exports and investment started to contract.
High-frequency indicators such as purchasing managers’ indexes fell to all-time lows in April, reflecting the bleak outlook, ADB pointed out.
Migrant workers have gone home to their villages after losing their jobs in the cities and will be slow to return even after containment measures are relaxed, ADB said.
The Manila-based Bank said fuel prices in India softened in May, but food inflation stayed elevated at 7.4 per cent year-on-year as supply faltered.