ADB cuts India's growth forecast

New Delhi: The Asian Development Bank (ADB) on Wednesday revised down India's economic growth forecast for the current fiscal to 10 per cent, from 11 per cent predicted earlier, citing the adverse impact of the second wave of the pandemic.

The growth forecast for India in fiscal year 2021 (ending in March 2022) was revised down, as the spike in Covid-19 cases during May dented the recovery, the Asian Development Bank (ADB) said in its latest economic outlook.

"The outbreak, however, dissipated faster than anticipated, resulting in several states easing lockdown measures and returning to more normal travel patterns. The economy is expected to rebound strongly in the remaining three quarters of FY2021, and grow by 10 per cent in the full fiscal year before moderating to 7.5 per cent in FY22," said the Asian Development Outlook Update (ADOU) 2021.

In its Asian Development Outlook forecast in April this year, the multilateral funding agency had projected India to grow at 11 per cent in the current fiscal year.

"Because consumption will recover only gradually, government spending and exports will contribute more to FY2021's growth than they did in the previous fiscal year," it said about India.