The Asian Development Bank on Thursday has improved its forecast for the Indian economy. It is expected to fall by 8 percent in 2020-21. Earlier it was estimated to fall by 9 percent. The ADB has expressed this expectation of a faster recovery. The Asian Development Outlook noted that the 7.5 per cent decline in the second quarter was better than expected, keeping in mind that the economy has started normalizing.
In the June quarter of the current financial year, the economy declined by 23.9 percent, which was the effect of the corona virus epidemic. It said that the GDP estimate for the FY 2020 was increased from 9.0 per cent to 8.0 per cent. There is a possibility of the other half coming back according to a year ago.
It states that growth will return in 2021-22, which will remain at 7.2 percent in South Asia and 8 percent in India. Earlier this month, Reserve Bank Governor Shaktikanta Das said that the economy is recovering faster than anticipated and the growth rate is expected to be positive in the second half of the current financial year. Das had said in the monetary policy review that if we look at the whole year, the economy is expected to decline by 7.5 percent, which is an improvement from the Reserve Bank’s forecast of the previous 9.5 percent decline.
