GDP Forecast: India's GDP may grow at 11 pc in FY22: Asian Dev Bank

Apr 28 2021 12:47 PM
GDP Forecast: India's GDP may grow at 11 pc in FY22: Asian Dev Bank

NEW DELHI: According to the Asian Development Bank (ADB) outlook, the Indian economy is expected to grow at 11 percent in the current financial year. The ADB also noted that the recent surge in Covid-19 cases may put this recovery at risk.

"India's economy, meanwhile, is expected to grow 11.0 percent in fiscal year (FY) 2021, which ends on 31 March 2022, amid a strong vaccine drive. However, the recent surge in COVID-19 cases may put this recovery at risk,” the ADB quoted.

India's GDP is expected to expand 7.0 percent in the next financial year. This year, South Asia's GDP growth is expected to rebound to 9.5 percent, following a 6.0 percent contraction in 2020, before moderating to 6.6 percent in the next year.

It added that the economic growth in developing Asia is set to rebound to 7.3 percent this year, supported by a healthy global recovery and early progress on coronavirus disease (COVID-19) vaccines.

"Growth is gaining momentum across developing Asia, but renewed COVID-19 outbreaks pose a threat to recovery. "Economies in the region are on diverging paths. Their trajectories are shaped by the extent of domestic outbreaks, the pace of their vaccine rollouts, and how much they are benefiting from the global recovery," said ADB Chief Economist Yasuyuki Sawada

As per the report, inflation in developing Asia is projected to fall to 2.3 percent from 2.8 percent last year, as food-price pressures ease in India and the People's Republic of China. The region's inflation rate is forecast to rise to 2.7 percent in 2022.

Household Economy: Lockdowns push household savings to 22.5 pc of GDP: Reports

India Smartphone market hits record shipments in March; second wave dampens demand in front

The second wave of COVID-19 has not battered the Indian economy: RBI Bulletin