In accordance with the Asian Development Outlook (ADO) by Asian Development Bank (ADB), for FY20-21, Indian economy is projected to contract by 4% in fiscal year (FY) 2020, ending on 31 March 2021, before growing 5.0% in FY2021.
- For Countries in ‘Developing Asia’, ADB forecasted growth of 0.1% in 2020. Excluding the newly industrialised economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei, China, Developing Asia’s growth predicted at 0.4% this year and 6.6% in 2021.
- ‘Developing Asia’ refers to a group of over 40 countries that are members of the ADB.
- The growth of South-Asia is predicted to contract by 3% in 2020, in comparison to 4.1% growth predicted in April, 2020. For FY21-22, growth prospects revised down to 4.9% from 6%.
The reason behind the slow growth is the containment measures to address the COVID-19 pandemic which are hampering economic activity and weaken external demand.
Growth of India by other rating agencies:
-World Bank projected India’s economy to shrink by 3.2% in the FY20-21.
-Moody’s Investors Service, Fitch Rating and S&P Global Ratings have all predicted a 4-5% contraction in India’s economic growth rate in the FY20-21.
About ADB:
Headquarters– Mandaluyong, Philippines
President– Masatsugu Asakawa
Members– 68
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