ADB also reduces India’s GDP forecast for FY23 to 7.2%

New Delhi, July 22 (KNN) The Asian Development Bank (ADB) has cut down India’s Gross Domestic Product (GDP) projection from 7.5 per cent to 7.2 per cent for the current financial year.

The reason for the reduction is higher-than-expected inflation which will wear away consumers’ purchasing power.

As per the bank’s latest report, “India’s GDP growth moderated to 4.1 per cent in Q4 of the fiscal year 2021 (FY2021, ended 31 March 2022) on disappointing growth in private consumption and a contraction in manufacturing.”

“India has been hit by the Omicron COVID-19 variant and the economic impact of the war in Ukraine,” it said.

The Indian government has reprioritized spending to cover higher subsidies for food and fuel, and other subsidies and transfers, due to sharp increases in global oil and food prices because of the war in Ukraine, it said.

For the entire South Asia region the growth forecast has been revised down from 7.0 per cent to 6.5 per cent for 2022 and from 7.4 per cent to 7.1 per cent for the next fiscal year.  (KNN Bureau)