Asian Development Bank has downgraded India's growth projection to 7 per cent for the current fiscal while lowering its forecast for the next financial year as well. ADB in its Asian Development Outlook 2017 update said, India's GDP growth is downgraded to 7 per cent in financial year 2017-18, a 0.4 percentage point drop from the April forecast. In financial year 2018-19, the forecast is adjusted down to 7.4 per cent, from 7.6 per cent. However, the multilateral lender said India continues its strong showing although demonetisation and implementation of the new goods and services tax regime have dented consumer spending and business investment. These short-term disruptions, ADB stated, are expected to dissipate allowing these initiatives to generate growth dividends over the medium term.