India’s economic growth downgraded to 10% by ADB

WHY IN NEWS?

The Asian Development Bank has downgraded India’s economic growth forecast for the current financial year to 10 % from 11% that it had previously projected in the month of April. This downgrade was done taking into account the adverse impact of the second wave of the Coronavirus pandemic.

About:

• In the last quarter of fiscal year which ended in March 2021, India’s GDP growth recovered to 1.6%.
• A second wave of the pandemic induced many state governments to impose strict containment measures hence, the growth projection for FY2021-2, was downgraded to 10% from the previously predicted 11%.
• The projection for FY2022-23 is upgraded to 7.5% from 7% as most of the population will be vaccinated by that time and economic activity will normalise.