The Asian Development Bank has predicted the forecast for India’s economic growth to 10% for the current fiscal year. It had earlier predicted a growth of 11%. The revised forecast showed a 1% decline due to the ill effects of the second wave of the Covid-19 pandemic. ADB stated that due to the slow pace of economic recovery caused by rising Covid-19 cases during the month of May, the growth forecast for the fiscal year 2021 (ending in March 2022) was revised down.
The Asian Development Outlook Update (ADOU) 2021, “The economy is expected to rebound strongly in the remaining three quarters of FY2021, and grow by 10% in the full fiscal year before moderating to 7.5% in FY2022.”
With declining Covid-19 cases in India, faster than it was expected, many states have eased lockdown restrictions and gone back to pre-Covid travel patterns.
In April forecast this year, ADB had projected India to grow at 11% in the current fiscal year.
On India’s growth, the multilateral funding agency said, “Because consumption will recover only gradually, government spending and exports will contribute more to FY2021’s growth than they did in the previous fiscal year.”
The economic outlook differs across South Asia, which includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The region is anticipated to expand faster than next year and slower than the previous year.
People’s Republic of China (PRC) will remain strong, despite a protracted recovery in household consumption.
“The GDP growth forecast remains unchanged at 8.1% in 2021 and 5.5% in 2022, as a solid export performance and higher fiscal support in the second half of 2021 keep growth on track,” it said on China.
Download Money9 App for the latest updates on Personal Finance.
FII buying impact on stock market; here are FII buying stocks list 2022
Updated: August 17, 2022Understand the link between crypto exchanges and money laundering
Updated: August 15, 2022Why mutual fund investment is falling ever since FIIs have made a comeback?
Updated: August 12, 2022Tariff increase on cards; 5g tariff plans in India to make data expensive
Updated: August 11, 2022Why wheat prices won’t fall even if wheat import duty is reduced?
Updated: August 10, 2022Know Nifty 50 forecast, Sensex 30 forecast
Updated: August 9, 2022Know the reason why onion prices are falling and current problems faced by onion farmers
Updated: August 5, 2022Why clothes are not becoming cheaper despite fall in cotton prices?
Updated: August 4, 2022