ADB cuts India’s Growth Forecast to 10%
The Asian Development Bank (ADP) has reduced its forecast for India’s GDP growth to 10 percent in 2021-22, from 11 percent it projected earlier.
Key Points
- GDP growth was reduced as the downside risks were dominating the economic outlook.
- ADB also noted that, rising input costs is increasing the inflation to a faster pace of 5.5 percent, against 5.2 percent estimated earlier.
- Inflation increased because of rising global oil prices and higher duties on gasoline & diesel fuel, along with double-digit consumer price inflation on pulses & vegetable oil.
- A deficient monsoon will increase the inflationary pressure.
- According to ADB, economy will ‘rebound strongly in the remaining three quarters and will increased by 10 percent in the full fiscal year before reaching to 7.5 percent in 2022-23.
- Risks to the outlook tilt towards the downside and depend mainly on the evolution of covid-19 pandemic.
- Rising prices on oil and other commodities will be increasing input and transportation costs for producers, which will be passed on to consumers.
Asian Development Bank (ADB)
ADB is a regional development bank. It was stablished on December 19, 1966. its headquarter is in Philippines. ADB also maintains 31 field offices across the world. The bank seeks to promote social and economic development in Asia.
Members of the ADB
ADB admits the members of “United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP)” and non-regional developed countries. At the time of its establishment, there were 31 members which now has increased to 68.
Background
ADB was modelled closely on the line of World Bank. Its weighted voting system is also similar to that of World Bank, where votes are distributed in proportion with the capital subscriptions of members.
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Month: Current Affairs - September, 2021