Central bank cuts India growth forecast

INDIA - The Reserve Bank of India, the central bank, on Tuesday cut its forecast for economic growth by one percentage point to 5-5.5 per cent, citing the impact of a devastating drought and weak industrial activity.

The reduced gross domestic product forecast is regarded as optimistic by economic think-tanks and banks, which have typically lowered their estimates for expanded economic activity to less than 5 per cent, the Financial Times reported.

The RBI's revised outlook coincides with the

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