31.5 C
Delhi
Saturday, September 26, 2020

9 per cent contraction of the Indian economy predicted by ADB

The ADB report noted that the Indian economy having weakened even before the pandemic struck, the government enjoyed little fiscal space to respond.

- Advertisement -

9 per cent contraction of the Indian economy predicted by ADB New Delhi, Sep 15 (IANS) The Asian Development Bank (ADB) on Tuesday projected a 9 per cent contraction of the Indian economy in the financial year 2020-21, revising its outlook within three months as the Covid situation continues.

In June, ADB had predicted a 4 per cent contraction in the country’s GDP in the current fiscal.

The forecast comes just over a fortnight after the country reported a 23.9 per cent contraction in its Gross Domestic Product (GDP) for the April-June quarter.

The ADB report noted that the Indian economy having weakened even before the pandemic struck, the government enjoyed little fiscal space to respond.

“Indian GDP is expected to fall by 9 per cent in the whole of this fiscal year and then grow by 8.0 per cent in the next,” it said.

On South Asia, ADB says that the sub-region is now expected to shrink by a steep 6.8 per cent in 2020 and rebound by 7.1 per cent in 2021.

It noted that as the Coronavirus (Covid-19) continued to expand regionally and globally, containment measures to counter the pandemic stifled economic activity. Domestic demand and production plummeted, plunging global economic activity and slashed external demand, it added.

Governments in the region responded with diverse policy measures, it said, citing the ‘Developing’ Asian countries.

It noted that after nosediving at first, capital flows, financial markets, and currencies have recovered.

Citing recent data, the ADB report said that the crisis may have bottomed out, but the picture across the region is mixed.

It noted the different economic trajectory in China and India, as the former has moved towards a nascent recovery (as it has reported a total of 85,202 cases) while India continues to struggle (as the second worst-hit by the pandemic with over 49 lakh cases so far).

“In particular, the two largest economies in the region are diverging as nascent recovery in the People’s Republic of China (PRC) contrasts with continued fragility in India,” it said.

The report said that after containing its domestic outbreak relatively rapidly, China saw growth recover from 6.8 per cent contraction in the first quarter to 3.2 per cent growth in the second. By contrast, the outbreak in India has intensified since April, spreading fast from cities to rural areas.

The hard and prolonged lockdown caused output to contract by 23.9 per cent in the April-June quarter, and various high-frequency indicators, while improving somewhat, show continued economic weakness, it added.

Source: IANS

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News

Consumers enjoy online shopping via AR/VR, 3D content: Report

New Delhi, Sep 26 (IANS) As millions of people stay home in the pandemic, immersive technologies such as augmented and virtual reality and 3D...

Delhi air to worsen in next 3 days, thanks to stubble burning

New Delhi, Sep 26 (IANS) It's that time of the year in Punjab-Haryana-NCR.Amid the protests over farm Bills, Punjab farmers are back at burning...

Will Govt have 80,000 crores available over the next one year?, saks Adar Poonawalla

New Delhi, Sep 26 (IANS) Rs 80,000 crore will be the cost of vaccinating everyone in India with the Covid-19 vaccine whenever it is...

NCB quizzes Deepika, Sara, Shraddha in drug case related to SSR death

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB) on Saturday questioned Bollywood divas Deepika Padukone, Sara Ali Khan, Shraddha Kapoor for several hours...

Centre puts price caps on medical oxygen after shortage reports

New Delhi, Sep 26 (IANS) In order to deal with shortage of medical oxygen and the resultant increase in prices in the country, the...

J&J Covid vaccine produces strong immune response in early trials

New York, Sep 26 (IANS) A leading Covid-19 vaccine candidate developed by global healthcare company Johnson & Johnson produced a strong immune response against...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Will Govt have 80,000 crores available over the next one year?, saks Adar Poonawalla

New Delhi, Sep 26 (IANS) Rs 80,000 crore will be the cost of vaccinating everyone in India with the Covid-19 vaccine whenever it is...

Will Govt have 80,000 crores available over the next one year?, saks Adar Poonawalla

New Delhi, Sep 26 (IANS) Rs 80,000 crore will be the cost of vaccinating everyone in India with the Covid-19 vaccine whenever it is...

Centre puts price caps on medical oxygen after shortage reports

New Delhi, Sep 26 (IANS) In order to deal with shortage of medical oxygen and the resultant increase in prices in the country, the...

Huge infrastructure build-up helped India recovery rate: Dr Harsh Vardhan

New Delhi, September 26 (ANI): Union Health Minister Dr Harsh Vardhan on Friday said that huge infrastructure build-up to counter the COVID -19 situation...

Aarogya Setu loses sheen as downloads drop

New Delhi/Noida, Sep 25 (IANS) Prashant Kumar who lives in Noida sector 143 often goes to a nearby mall-cum-office complex with his family for...

PM Modi asks states to focus on micro-containment zones

New Delhi, Sep 23 (PTI) Prime Minister Narendra Modi on Wednesday asked states to reassess if lockdowns of one or two days are effective...

Trending News In India

J&J Covid vaccine produces strong immune response in early trials

New York, Sep 26 (IANS) A leading Covid-19 vaccine candidate developed by global healthcare company Johnson & Johnson produced a strong immune response against...

Delhi air to worsen in next 3 days, thanks to stubble burning

New Delhi, Sep 26 (IANS) It's that time of the year in Punjab-Haryana-NCR.Amid the protests over farm Bills, Punjab farmers are back at burning...

Will Govt have 80,000 crores available over the next one year?, saks Adar Poonawalla

New Delhi, Sep 26 (IANS) Rs 80,000 crore will be the cost of vaccinating everyone in India with the Covid-19 vaccine whenever it is...

NCB quizzes Deepika, Sara, Shraddha in drug case related to SSR death

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB) on Saturday questioned Bollywood divas Deepika Padukone, Sara Ali Khan, Shraddha Kapoor for several hours...

Centre puts price caps on medical oxygen after shortage reports

New Delhi, Sep 26 (IANS) In order to deal with shortage of medical oxygen and the resultant increase in prices in the country, the...

J&J Covid vaccine produces strong immune response in early trials

New York, Sep 26 (IANS) A leading Covid-19 vaccine candidate developed by global healthcare company Johnson & Johnson produced a strong immune response against...

Trending Showbiz

NCB quizzes Deepika, Sara, Shraddha in drug case related to SSR death

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB) on Saturday questioned Bollywood divas Deepika Padukone, Sara Ali Khan, Shraddha Kapoor for several hours...

‘CBI delay in converting abetment to suicide to murder frustrating’

Mumbai, Sep 25 (IANS) Vikas Singh, family lawyer of late actor Sushant Singh Rajput, on Friday stated that the delay being by Central Bureau...

NCB questions Rakul, Deepika’s ex-manager, Dharma Productions honcho

Mumbai, Sep 25 (IANS) The Narcotics Control Bureau (NCB) on Friday is questioning Bollywood actor Rakul Preet Singh, Dharma Productions executive producer Kshitij Ravi...

Famed singer S.P. Balasubrahmanyam succumbs to Covid-19

Chennai, Sep 25 (IANS) Famed playback singer and Padma awardee S.P. Balasubrahmanyam, or popularly SPB or Balu in the movie world and who has...

WhatsApp clarifies after probe agencies retrieve chats

New Delhi, Sep 25 (IANS) The Narcotics Control Bureau (NCB) cloned the mobile phones of Rhea Chakraborty and others, which gave them access to the WhatsApp chats...

I wanted Rishi Kapoor to direct more movies, says Randhir Kapoor

Mumbai, Sep 25 (IANS) Randhir Kapoor says he loved the 1999 film Aa Ab Laut Chalen, helmed by his late brother and actor Rishi...

Trending Sports

Shaw and Rabada propel Delhi to big win over Dhoni’s CSK

Dubai, Sep 26 (IANS/GloFans) In yet another dismal show, three-time IPL champions Chennai Super Kings (CSK) suffered a 44-run defeat against a charged-up Delhi Capitals (DC) here on...

KL Rahul’s record-breaking ton blows RCB away

Dubai, Sep 25 (IANS/GloFans) Captain K.L. Rahul on Thursday shattered a few IPL records with a blistering 69-ball 132 not out -- the highest individual...

Sat on bench for hours after losing in 1992 Oly quarters, reveals Paes

New Delhi, Sep 25 (IANS) Eighteen-time Grand Slam champion Leander Paes made history in 1996 when he became the first Indian tennis player to...

Ex-Australian cricketer Dean Jones dies of cardiac arrest in Mumbai

New Delhi, Sep 24 (IANS) Former Australian cricketer Dean Jones passed away in Mumbai on Thursday after suffering a cardiac arrest. The 59-year-old was...

Mumbai hammer Kolkata by 49 runs in one-sided affair

Abu Dhabi, Sep 24 (IANS/GloFans) Four-time champions Mumbai Indians rode on a quality knock from captain Rohit Sharma (80) and some decent show by their...

Players focussed on attaining peak fitness: Hockey captain Manpreet

By Rohit Mundayur, (IANS) Senior men’s hockey probables at the Sports Authority of India’s (SAI) Bengaluru centre are currently focussed on getting as close...

Latest Trending News In India

Consumers enjoy online shopping via AR/VR, 3D content: Report

New Delhi, Sep 26 (IANS) As millions of people stay home in the pandemic, immersive technologies such as augmented and virtual reality and 3D...

Delhi air to worsen in next 3 days, thanks to stubble burning

New Delhi, Sep 26 (IANS) It's that time of the year in Punjab-Haryana-NCR.Amid the protests over farm Bills, Punjab farmers are back at burning...

Will Govt have 80,000 crores available over the next one year?, saks Adar Poonawalla

New Delhi, Sep 26 (IANS) Rs 80,000 crore will be the cost of vaccinating everyone in India with the Covid-19 vaccine whenever it is...

NCB quizzes Deepika, Sara, Shraddha in drug case related to SSR death

Mumbai, Sep 26 (IANS) The Narcotics Control Bureau (NCB) on Saturday questioned Bollywood divas Deepika Padukone, Sara Ali Khan, Shraddha Kapoor for several hours...

Centre puts price caps on medical oxygen after shortage reports

New Delhi, Sep 26 (IANS) In order to deal with shortage of medical oxygen and the resultant increase in prices in the country, the...