DAILY NEWS ANALYSIS

GS-II : Important reports Important reports

22 September, 2021
5 Min Read

ADB cuts India’s GDP growth forecast in 2021-22 to 10%

The Asian Development Bank has cut its forecast for India’s GDP growth in 2021-22 to 10%, from 11% projected earlier, with downside risks dominating the economic outlook. The ADB also sees rising input costs fuelling inflation to a faster 5.5% pace than the 5.2% previously estimated.
While the COVID-19 second wave had disrupted the recovery since the ADB’s April forecast for 11% growth, the Bank expects the economy to ‘rebound strongly in the remaining three quarters and grow by 10% in the full fiscal year before moderating to 7.5%’ in 2022-23.
Still, the risks to the outlook tilt to the downside and depend mainly on the evolution of the pandemic, the ADB’s director of macroeconomic research Abdul Abiad told The Hindu.
“The primary risks are centred around the pandemic,” said Dr. Abiad. “Until we get to the point that we have really widespread vaccination, countries still are at risk of renewed outbreaks as the Delta variant is much more infectious. So the main risk weighing on the outlook is if vaccination hasn’t progressed widely, the health system gets strained and the government needs to put restrictions on mobility again,” he explained.
That the second wave accelerated very rapidly but also declined very rapidly, allowing the economy to reopen was another key factor behind ADB’s assessment, and was backed by the Purchasing Managers’ Index (PMI) readings that had ‘switched to highly positive for India’, he pointed out.
“Because consumption will recover only gradually, government spending and exports will contribute more to this year’s growth than they did in the previous fiscal year,” the ADB said in an update to its Asian Development Outlook for 2021, emphasising that the healthy trend in export orders suggested that ‘strong external demand’ had helped cushion the impact of the second wave on the economy.
Blaming the uptick in India’s inflation on rising global oil prices and higher duties on gasoline and diesel fuel, along with double-digit consumer price inflation for pulses and vegetable oil, the ADB said a deficient monsoon could augur further inflationary pressure.
“Rising prices for oil and other commodities will further increase input and transportation costs for producers, which they will pass on to consumers. These push factors and the second-round effects of persistently high headline inflation from last year will keep core inflation elevated,” it warned.

Source: PIB

Join Our Telegram

US Resumes Nuclear Weapon Testing

Formation Day

03 Dec, 25
SHARE

On 1st November, eight Indian states—Andhra Pradesh, Chhattisgarh, Haryana, Karnataka, Kerala, Madhya Pradesh, Punjab, and Tamil Nadu—along with five Union Territories—Andaman and Nicobar Islands, Chandigarh, Delhi, Lakshadweep, and Puducherry—celebrate their Formation Day. This date marks an important milestone in India

Turtle (Kachhua) Wildlife Sanctuary

02 Dec, 25
SHARE

The Turtle Wildlife Sanctuary, also known as the Kachhua Sanctuary, is located in the Varanasi district of Uttar Pradesh. It is recognised as India’s first freshwater turtle wildlife sanctuary, established to conserve endangered turtle species and support the ecological health of the Ganga River. Location and Extent The sanctuary co

Introduction of AI and Computational Thinking (CT) in

02 Dec, 25
SHARE

The Ministry of Education plans to introduce Artificial Intelligence (AI) and Computational Thinking (CT) from Class 3 onwards in the 2026–27 academic year. This initiative is part of the National Curriculum Framework for School Education (NCF-SE) 2023 and aligns with the National Education Policy (NEP) 2020. The aim is to prepare student

Sal Tree

02 Dec, 25
SHARE

Scientists from the Environment Department of Himachal Pradesh University (HPU) in Shimla have recently revealed that the Sal tree (Shorea robusta) is the most effective natural air purifier for combating rising pollution levels. Their findings highlight the tree’s superior capacity to trap dust, absorb gases, and cleanse the air compared

US Resumes Nuclear Weapon Testing

02 Dec, 25
SHARE

The President of the United States has ordered the resumption of nuclear weapon testing after a gap of 33 years, the last test being in 1992. This decision marks a significant shift in global nuclear policy and has far-reaching implications for geopolitics, the environment, and international security. Status of Global Nuclear Weapon Testing

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

ADB cuts India’s GDP growth forecast in 2021-22 to 10%

ADB cuts India’s GDP growth forecast in 2021-22 to 10%

Formation Day

Turtle (Kachhua) Wildlife Sanctuary

Introduction of AI and Computational Thinking (CT) in

Sal Tree

US Resumes Nuclear Weapon Testing

DNA

03 Dec,2025

Important GS Topics

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links