The Asian Development Bank (ADB) recently downgraded India's economic growth forecast for the current fiscal to 10 per cent from 11 per cent projected in April due to the adverse impact of the COVID-19 pandemic. India's GDP growth recovered to 1.6 per cent in the last quarter of the last fiscal, narrowing contraction in the whole fiscal from 8 per cent estimated in April to a revised 7.3 per cent, it said.
"Early indicators show economic activity resuming quickly after containment measures eased. The growth projection for FY2021 (ending March 2022), downgraded from 11 per cent in ADO 2021 to 10 per cent, reflects large base effects," the multilateral funding agency said in the Asian Development Outlook (ADO) Supplement.The Asian Development Bank has downgraded India's economic growth forecast for this fiscal to 10 per cent from 11 per cent projected in April due to the pandemic's impact. India's GDP growth recovered to 1.6 per cent in the last quarter of the last fiscal, narrowing contraction in that fiscal from 8 per cent estimated in April to a revised 7.3 per cent.#
The ADO was released in April.
The projection for fiscal 2022-23 (ending in March 2023), by which time much of India's population is expected to be vaccinated, is upgraded from 7 per cent to 7.5 per cent as economic activity normalises, said the Manila-headquartered funding agency.
The ADB supplement said the expansion in China is still projected at 8.1 per cent in 2021, and 5.5 per cent in 2022, as favorable domestic and external trends align with April forecasts.
On South Asia, ADB said the economic outlook for the sub-region is dampened by new waves of COVID-19 hitting the sub-region from March to June this year.
The adverse economic impact of these new waves is expected to be limited, with businesses and consumers better able to adapt to the pandemic and containment measures now than they were a year ago, it said.
"The GDP growth forecast for the subregion in 2021 is downgraded from 9.5 per cent in ADO 2021 to 8.9 per cent but upgraded for 2022, from 6.6 per cent to 7 per cent," ADB said in the supplement.
The projection (developing Asia) for 2022 is upgraded from 5.3 per cent to 5.4 per cent, it added.
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