Udayavni Special

India’s recovery faster than expected; ADB revises upward India’s FY21 GDP growth to 8%


PTI, Dec 10, 2020, 2:40 PM IST

Credit: Getty Images

New Delhi: The Asian Development Bank (ADB) on Thursday upgraded its forecast for the Indian economy, projecting 8 per cent contraction in 2020-21 as compared to 9 per cent degrowth estimated earlier, on the back of faster than expected recovery.

Observing that the economy has begun to normalise, the Asian Development Outlook (ADO) Supplement said the second-quarter contraction at 7.5 per cent was better than expected.

The economy contracted by 23.9 per cent in June quarter of the current fiscal on account of the impact of the coronavirus pandemic.

“The GDP forecast for FY2020 is upgraded from 9.0 per cent contraction to 8.0 per cent, with GDP in H2 probably restored to its size a year earlier. The growth projection for FY2021 is kept at 8.0 per cent,” it said.

Highlighting that India is recovering more rapidly than expected, the report said the earlier South Asia forecast of 6.8 per cent contraction is upgraded to (-)6.1 per cent in line with an improved projection for India.

Growth will return in 2021-22, at 7.2 per cent in South Asia and 8 per cent in India, it added.

Earlier this month, Reserve Bank Governor Shaktikanta Das had said the economy is recuperating faster than anticipated and growth rate is likely to turn positive in the second half of the current financial year.

In the year as a whole, the economy is likely to contract by 7.5 per cent, which is an improvement over Reserve Bank’s previous projection of 9.5 per cent contraction, Das had said while unveiling the bi-monthly monetary policy review.

Observing that the prospects of growth have brightened with the progress on the vaccine front, Das said, the economy was likely to record a growth of 0.1 per cent in Q3 and 0.7 per cent in Q4.

With regard to inflation, ADO said, it is expected to ease in the coming months, and the 4 per cent update projection for 2021-22 is maintained.

In India, supply chain disruption brought food inflation to an average of 9.1 per cent in the first 7 months of 2020-21, pushing headline inflation to 6.9 per cent in the same period, it said.

As a result, ADO revised India’s inflation from 4.5 per cent to 5.8 per cent for the current fiscal.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Raj Bhavan Chalo: Farmers in Karnataka take out procession against farm laws

Rahane masterclass puts heat on Kohli’s Test captaincy

Union ministers start 10th round of talks with protesting farmer unions

Give option to choose vaccine: Karnataka resident doctors to centre

You are the authority: SC refuses to rule on R-Day tractor rally, allows Centre to withdraw plea

SC irked over aspersions cast on members of court-appointed committee on farm laws

Loss of smell may be best sign of COVID-19, research confirms


Related Articles More

Union ministers start 10th round of talks with protesting farmer unions

You are the authority: SC refuses to rule on R-Day tractor rally, allows Centre to withdraw plea

SC irked over aspersions cast on members of court-appointed committee on farm laws

UK coronavirus strain detected in at least 60 countries: WHO

4 soldiers injured in Pakistani firing along LoC in J-K’s Akhnoor sector

MUST WATCH

Ullal: Condom found in donation box

Karunakar Kotegar | How to teach forgiveness | Udayavani

Arnab-Gupta WhatsApp chat leak!! New story, much misery…

‘Act of revenge’: Attack on constable Ganesh Kamath was to avenge M’luru police firing

Udayavani Campaign: Identify parking areas to resolve public problems , says MLA Kamath

Latest Additions

Dynastic politics must be stopped, Yatnal’s new outrage against BSY

Raj Bhavan Chalo: Farmers in Karnataka take out procession against farm laws

Eateries demand to rationalise GST on food delivery biz to 5%

Rahane masterclass puts heat on Kohli’s Test captaincy

Union ministers start 10th round of talks with protesting farmer unions

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.