Business

ADB expects India’s economic growth to slow down to 4 pc in FY21 on global pandemic : The Tribune India

New Delhi, 3 April

The Asian Development Bank on Friday said in its outlook for the financial year 2020-21 that India’s economic growth is likely to slow to 4 percent this fiscal year on the back of the current global health emergency.

After experiencing a sharp slowdown in the country last year, the growth rate in India will remain low, which will grow from 6.1 percent to 5 percent in FY19, as the debt crisis in the non-banking financial sector has severely affected bank lending. Interrupted, the Manila-based lender said.

Masatuga Asakawa, president of the Asian Development Bank, said, “We are facing an exceptionally challenging time. The outbreak of Coronavirus (COVID-19) is disrupting people’s lives and causing business and other economic activities around the world Is blocking it. “

Noting that COVID-19 has not yet spread extensively in India, the ADB said measures to curb the virus and a weakened global environment would whip headwinds into corporate and personal income tax cuts as well as the financial sector Supporting reforms that are meant to revive. Credit flow.

In its Asian Development Outlook (ADO) 2020 the lender said: Gross domestic product (GDP) growth in India is projected to grow at a slow pace to 4 percent in FY21 before strengthening to 6.2 percent in the next fiscal.

South Asia will face recession.

According to ADO 2020, “growth in South Asia will decline to 4.1 percent in 2020 and then to 6 percent in 2021.

After a dismal 2019, growth in the region (Asia and the Pacific) under the impact of the current health emergency is expected to slow to 2.2 percent in 2020 and then rebound to 6.2 percent in 2021, according to the sector-wise outlook.

Asia’s growth will be largely weakened by the epidemic, considering the region’s deeper integration with the global economy through tourism, trade and remittances, saying that some countries are also heavily burdened by commodity prices Used to be. PTI

Back to top button