The Asian Development Bank (ADB) on Wednesday, July 19, retained India’s economic growth forecast at 6.4 per cent for the current financial year and 6.7 per cent for the next, saying robust domestic demand will continue to support the region’s recovery. In an update to its Asian Development Outlook, the ADB said inflation is expected to continue to fall, approaching pre-pandemic levels as fuel and food prices decline. It forecast 3.6 per cent
inflation this year for developing economies in Asia, and 3.4 per cent in 2024. The Indian economy grew 7.2 per cent in the 2022-23 fiscal ended March 2023.
“Asia and the Pacific continues to recover from the pandemic at a steady pace,” ADB Chief Economist Albert Park said. “Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth
and demand next year has worsened, Park added. In April, the ADB had projected that India’s economic growth is expected to moderate to 6.4 per cent in the current financial year due to tight monetary conditions and elevated oil prices.
Tag: ADB
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ADB retains India’s growth forecast at 6.4% for current fiscal
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ADB lowers India’s GDP forecast for FY23 to 7.2%
New Delhi (TIP)-Asian Development Bank (ADB) has lowered the economic growth forecast for India in the current to 7.2% from its earlier estimate of 7.5% due to the impact of Covid and the Russia-Ukraine war. The ADB also lowered the economic growth estimates for the 2021-22 fiscal to 8.7% from the earlier 8.9%. India’s GDP growth moderated to 4.1% in Q4 of the fiscal year ended March 2022 on disappointing growth in private consumption and a contraction in manufacturing, said the ADB in its supplement to the Asian Development Outlook (ADO) for 2022. “India has been hit by the omicron Covid variant and the economic impact of the war in Ukraine. Consequently, the GDP growth for 2021-22 is revised down from 8.9% to 8.7% and from 7.5% to 7.2% for 2022-23.
“Although consumer confidence continues to improve, higher-than-expected inflation will erode consumer purchasing power,” the ADB Supplement released on Thursday, July 21, said.
Some of the impacts of this may be offset by a cut in excise duties, the provision of fertiliser and gas subsidies, and the extension of a free food distribution programme, it said. Private investment will soften due to the higher cost of borrowing for firms as the RBI continues to raise policy rates to contain inflation.For the South Asian region, it has lowered the growth forecast from 7% to 6.5% for 2022 and from 7.4% to 7.1% for 2023 mainly due to the economic crisis in Sri Lanka and high inflation and associated monetary tightening in India.
Source: TNS
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India to grow at 7.5% in current fiscal: ADB
India is likely to maintain its position as the fastest-growing major economy with the ADB outlook projecting a growth rate of 7.5% for 2022-23 on strong investment prospects against 5% for China in January-December 2022. The Asian Development Bank Outlook 2022 said India’s growth in the next fiscal year 2023-24 will accelerate further to 8%, though China will witness a deceleration in growth to 4.8% in 2023. The ADB, however, flagged inflation as a major issue mainly on account of a rise in prices of commodities in wake of the ongoing Russia-Ukraine war. “Economies in developing Asia are starting to find their footing as they slowly emerge from the worst of the Covid pandemic,” ADB Chief Economist Albert Park said.
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ADB slashes India’s FY22 growth forecast to 10%
Asian Development Bank (ADB) has downgraded India’s economic growth forecast for the current financial year to 10% on Tuesday, from 11% projected earlier this year, mainly on account of the adverse impact of the coronavirus pandemic. India’s GDP growth recovered to 1.6% in the last quarter of fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8% estimated in April to a revised 7.3%, the multilateral funding agency said in the Asian Development Outlook (ADO) Supplement. “Early indicators show economic activity resuming quickly after containment measures eased. The growth projection for FY2021 (ending March 2022), downgraded from 11% in ADO 2021 to 10%, reflects large base effects,” it said. Indian consumer price inflation rose to 6.3% year-on-year in May as both food and fuel inflation outpaced expectations. “This Supplement raises the inflation forecast for India in FY2021 (fiscal ending March 2022) by 0.3 percentage points to 5.5%,” the ADB said.
Swiggy raises $1.25 bn from SoftBank, Prosus
Food ordering and delivery platform Swiggy has announced closure of $1.25 billion (approximately Rs 9,345 crore) funding led by SoftBank Vision Fund 2 and Prosus. As per sources, the closure of this round pegs the valuation of the company at $5.5 billion (around Rs 41,125 crore).
It marks the first investment in the Indian food delivery category by SoftBank Vision Fund 2, with participation from the company’s long-term investor, Prosus, and other existing investors Accel Partners and Wellington Management, Swiggy said. Besides, new investors Qatar Investment Authority, Falcon Edge Capital, Amansa Capital, Goldman Sachs, Think Investments and Carmignac participated in the round, it stated.