×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 22 September, 2021

  • 5 Min Read

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

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


Skill Development in India: Challenges and Issues

Skill Development in India: Challenges and Issues The 13th Federation of Indian Chambers of Commerce and Industry (FICCI) Global Skills Summit 2022 was recently inaugurated by the Union Skill Development and Entrepreneurship Minister. Theme: Making It Happen: Education to Employability. ??????? What is the Current Situation of Skill

Stress in workplaces: WHO & ILO Report

Stress in workplaces: WHO & ILO Report The World Health Organization (WHO) and the International Labour Organization (ILO) recently released guidelines to address mental health issues in the global workforce. ??????? What exactly is work-related stress? Long hours, a heavy workload, job insecurity, and conflicts with coworke

Abortion rights for single Women

Abortion rights for single Women Recently, the Supreme Court ruled that all women in the country, regardless of marital status, can have an abortion up to 24 weeks into their pregnancy. What is the Supreme Court's decision? Ruled over an ancient law: It has ruled on a 51-year-old abortion law (The Medical Termination of Pregn

PFI ban under UAPA

PFI ban under UAPA The Ministry of Home Affairs (MHA) declared the Popular Front Of India, and its front organizations as an “unlawful association” under the Unlawful Activities Prevention Act (UAPA). About UAPA  The UAPA is India’s main law against terrorism and terrorist activities. It

Cardiovascular Diseases (CVDs)

Cardiovascular Diseases (CVDs) World Heart Day is celebrated on 29th September every year. It was first observed in the year 2000, following a collaboration between the World Heart Federation and the World Health Organization (WHO). It is a global campaign in which the federation unites people in the fight against the CVD burden and insp

Toppers

Search By Date

Newsletter Subscription
SMS Alerts