Asian Development Bank (ADB) in its supplement to the Asian Development Outlook (ADO) for 2022 said that it has lowered the economic growth forecast for India for current financial year (FY23) to 7.2 per cent, with impacts of COVID-19 and Russia-Ukraine war getting exacerbated by high inflation. In April, it had forecast the Indian economy to grow by 7.5 per cent.
It also revised downwards the economic growth in fiscal ended March 2022 to 8.7 per cent from 8.9 per cent estimated earlier. It stated India’s GDP (Gross Domestic Product) growth moderated to 4.1 per cent in Q4 of fiscal year ended March 2022 on disappointing growth in private consumption and a contraction in manufacturing.
Besides, for the South Asian region, it has lowered the growth forecast from 7 per cent to 6.5 per cent for 2022 and from 7.4 per cent to 7.1 per cent for 2023 mainly due to the economic crisis in Sri Lanka and high inflation and associated monetary tightening in India.
