Asian Development Outlook

The Asian Development Bank recently released the Asian Development Outlook. Under its outlook, the Asian Development Bank projected that Indian economy is to contract by – 8% in the fiscal year 2020-21. Earlier it was estimated by the bank that India would contract by – 9%. This is the GDP forecast of India by the bank. The growth projection has been kept at 8%. These announcements are part of the Asian Development Outlook.

According to the Asian Development of Outlook, the developing Asia is to contract by 0.4 % in 2020 and grow by 6.8% in 2021. The Asian Development Bank also declared that the growth of South Asia in the fiscal year 2020-21 will be at 7.2%.

Key findings

According to the Asian Development Outlook, released by the Asian Development Bank, inflation is expected to ease in the coming months. It is to be maintained at 4% in India according to the report. The report also says that in India the supply chain disruption increased the food inflation to 9.1 % in the first seven months of 2020. This pushed the headline inflation to 6.9 percent.

According to the report agriculture, manufacturing is growing in India and fixed investment is declining. The net exports contributed to 3.4% growth in Q2. The Reserve Bank of India has also announced during its recent Monetary Policy Review that India is recuperating faster than anticipated.

Reserve Bank of India

The Reserve Bank of India projects that India is to contract by 7.5%. Earlier the bank projected that the contraction will be by 9.5%.

Asian Development Bank

It is committed in achieving prosperous, inclusive and sustainable Asia and the Pacific. According to the bank, India and China are the key players in deciding the economy of the South and South East Asian region.

Way forward

The recent development of vaccines are tempering the the fear of economic crisis. The report concludes that  safe and timely vaccine delivery to developing economies is essential for the reopening of economies.

Month: Current Affairs - December, 2020