ADB projects Indian economy to grow by 7.5% this year, 8% in next fiscal

Asian Development Bank anticipated a 7 per cent collective growth for the  South Asian economies in 2022, on Wednesday, with India's largest economy rising by 7.5 per cent this fiscal year before increasing to 8 per cent the next year.

The Manila-based multilateral funding agency stated in its annual Asian Development Outlook (ADO) 2022 that growth will dip to 7 per cent in 2022 before rising to 7.4 per cent in 2023. 

India and Pakistan significantly drive the subregion's growth trends. The agency report read that the South Asian economies are anticipated to expand collectively by 7 per cent in 2022 and by 7. 4 per cent in 2023. India, the subregion's largest economy is expected to grow by 7.5 per cent this fiscal year (FY 23) and 8 per cent by next fiscal year (FY 24).

It added that Pakistan's growth is projected to moderate to 4 per cent in 2022 on poor domestic demand from monetary tightening and fiscal consolidation before picking up to 4.5 per cent in 2023. 

The document added that growing Asia's economies are expected to grow by 5.2 per cent this year and 5.3 per cent in 2023, owing to a strong recovery in domestic demand and steady expansion in exports. 

However, the ADB Outlook stated that uncertainties arising from Russia's invasion of Ukraine, the ongoing coronavirus disease (Covid-19) pandemic, and the United States Federal Reserve's tightening pose threats to the outlook.

Developing Asia includes 46 countries by geographic group, Caucasus and Central Asia, East Asia, South Asia, Southeast Asia, and the Pacific. South Asia includes Afghanistan, Bhutan, India, Bangladesh, Maldives, Nepal, Pakistan, and Sri Lanka.

The ADB Cheif Economist Albert Park stated that the economies in developing Asia are beginning to search for their footing as they slowly develop from the worst of the Covid-19 pandemic. However, the geopolitical uncertainty and new Covid-19 outbreaks and virus variations can potentially disrupt the trend.

Park added that the governments in the region must be watchful and ready to take action to mitigate these threats. This includes ensuring that as many persons as possible have been adequately immunised against Covid-19. Monetary authorities should also keep a careful eye on their inflation situation to not fall behind the curve. 

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• ADO
• Asian Development Bank
• Asian Development Outlook
• Bhutan
• Covid-19
• FISCAL YEAR 2023
• GROWTH RATE
• INDIA
• Pakistan
• Russia-Ukraine war
• subregion's growth trends