India set to grow at 7.2% this fiscal on rising consumption: ADB

India is expected to rebound to 7.2 percent in 2019 & 7.3 percent in 2020 as policy rates are cut & farmers receive income support, bolstering domestic demand. India's growth is set to pick up & is expected to grow at 7.2 percent in the current fiscal on strengthening consumption, Asian Development Bank said in its flagship report released Wednesday. Southeast Asia will sustain growth at close to 5 percent this year.

Strengthening domestic demand will offset weaker export growth. Strong consumption, spurred by rising incomes, subdued inflation, and robust remittances, should boost economic activity in the subregion, it said.

Export demand, on the other hand, is likely to soften in 2019 in line with the weaker global environment and a muted forecast for semiconductor exports, before picking up slightly in 2020.

"Growth, overall, remains solid with domestic consumption strong or expanding in most economies around the region. This is softening the impact of slowing exports, said ADB Chief Economist Yasuyuki Sawada.

Uncertainty clouding the outlook remains elevated, Sawada added.