: ADB lowers India’s GDP growth projection for this fiscal to 10% #FinanceIndia #StockMarketNEWS #Business New Delhi: The Asian Development Bank (ADB) has lowered India’s growth projections for

@StockMarketNEWS Thu 23 Sep, 2021

Posted in: #Business #FinanceIndia #StockMarketNEWS

ADB lowers India’s GDP growth projection for this fiscal to 10% #FinanceIndia #StockMarketNEWS #Business
New Delhi: The Asian Development Bank (ADB) has lowered India’s growth projections for the current financial year by a percentage point to 10 per cent, mainly due to disruptions in economic activity caused by the second wave of the COVID-19 pandemic.

In April, ADB had projected a growth rate of 11 per cent in 2021-22 for India.

In its update of the Asian Development Outlook (ADO) released on Wednesday, the multilateral lending agency has also trimmed the growth forecast for Asia as a region from 7. 3 per cent to 7. 1 per cent for 2021, though it retained the growth projections for China at 8. 1 per cent.

“The growth forecast for India in fiscal year 2021 (ending March 2022) is revised down, as May’s spike in COVID-19 dented the recovery. The outbreak, however, dissipated faster than anticipated, resulting in several states easing lockdown measures and returning to more normal travel patterns,??? said the ADO Update (ADOU) 2021.

The economy is expected to rebound strongly in the remaining three quarters of FY2021, and grow by 10 per cent in the full fiscal year, before moderating to 7. 5 per cent in FY2022 (fiscal ending March 2023), ADB said.

The Reserve Bank of India (RBI) also trimmed India’s economic growth projection by a similar margin to 9. 5 per cent in June this year.

The forecast, for the 12 months ending March 31, 2022, takes into account disruptions in economic activity caused by the second wave of coronavirus disease (COVID-19) pandemic, which adversely impacted services, domestic consumption, and the urban informal sector, ADB said.

Because consumption will recover only gradually, the government spending and exports will contribute more to FY2021 than they did in the previous fiscal, it said.

“The Indian economy is showing encouraging signs of recovery as the effects of the second wave dissipate. The government’s vaccination drive, its new fiscal stimulus package, and initiatives to free more resources for infrastructure development, along with measures to strengthen health-related interventions, are helping speed up recovery,??? Takeo Konishi, ADB Country Director for India, said.

About South Asia, comprising Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, the update said the outlook varies across the subregion.

“The subregion is projected to expand more slowly this year than earlier projected, but faster next year. While India’s drives the forecast, growth rates will vary across economies. As well as for India, this Update revises down 2021’s forecasts for Bangladesh and Nepal, both grappling with another resurgence in COVID-19 cases.