Asian Development Outlook Report
ASIAN DEVELOPMENT OUTLOOK REPORT:
Asian Development Bank (ADB) projected India’s growth at 11% in 2021-22. Earlier it projected a growth rate of 8%.
Further, in the year 2022-23, the projected growth rate is 7%.
CAVEAT: It further added that If, India will not be able contain the second wave of the COVID-19. It will not be able to achieve the projected growth rate.
Reasons cited by the ADB in its report for increasing the forecast:
This year the containment strategy is more targeted in comparison to the previous year nationwide blanket lockdown. This will cost less on the economy.
The US is witnessing an economic surge, which is largely fueled by the government. And it being the largest export market for India, it will support the revival of the Indian economy.
Government capital expenditure and vaccination programme will aid
Challenges in the path of achieving the growth:
Second wave of coronavirus is worrisome, especially if the vaccination programme fails.
Tightening of global financial conditions will also pose another challenge on India’s market interest rate.
Rising number of bad loans will impact fresh lending by the banks and inturn will act as a roadblock in the Increase in private investment.
India’s Average inflation will come to 5.2% this year from 6.2% last fiscal, and come to 4.8% in next fiscal.
Reason for decline in inflation rates:
Good agriculture harvests and supply chain recovery will lead to reduction in food inflation.
Last year the price rise was due to increased taxation on gasoline, despite lower oil prices. These taxes are expected to come down.
About the Asian Development outlook Report:
It is an annual report.
It is released by the Asian Development Bank.
It analyzes economic and development issues in the developing countries in Asia.
ASIAN DEVELOPMENT BANK:
It is a regional development bank. It was established on 19th December, 1966.
Members of the country
India is a founding member of Asian development bank.
It has in total 68 countries as members.
Japan and the United States are the major shareholders in the bank with15.6% shares , followed by china, India and Australia
Headquarter of the bank is situated in Manila, Philippines.
It aims at social and economic development in the Asia pacific region.