The Asian Development Bank (ADB) has downgraded India’s economic growth forecast for the current financial year to 10 per cent from 11 per cent projected in April, on account of the adverse impact of the coronavirus pandemic.
India’s GDP growth recovered to 1.6 per cent in the last quarter of the fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8 per cent estimated in April to a revised 7.3 per cent, the multilateral funding agency said in the Asian Development Outlook (ADO) Supplement.
“Then a second wave of the pandemic induced many state governments to impose strict containment measures. New COVID-19 cases daily peaked at more than 4,00,000 in early May, then fell to a little over 40,000 in early July.
“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,” it said.