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ADB likely to revise downwards India's growth estimates

Asian Development Bank said on Monday that it is likely to revise downwards the six per cent growth estimates for India for the current fiscal.

"We are reviewing the growth estimate. It is likely to be revised downwards on account of the drought situation," Sudipto Mundle, (India chief economist), ADB, said on the sidelines of the first annual meeting of the South Asia Business Forum in New Delhi.

ADB undertakes a review of the Asian region's growth parametres every six months in its Asian Development Outlook.

The outlook had earlier predicted a six per cent GDP growth rate for India in the current fiscal and 6.8 per cent growth in 2003-04.

A revision of these projections will be included in the bank's outlook update for the Asian region, which will be brought out in September.

The government had last week admitted that the current drought was 'very widespread' covering the entire country, except Assam and some other states, and announced revision of banking-cum-insurance norms to mitigate the plight of farmers.

Contrary to earlier perception that drought is restricted to 12 states, reports say that it has now affected most of the country and the worse in the past 15 years.

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