ADB Keeps India’s GDP Growth Unchanged at 7%: The Asian Development Bank, based in Manila, maintained its projection for India’s economic growth for the fiscal years 2022–2023 at 7%. The bank also forecasted a weaker-than-previously expected pace for developing Asia. As opposed to 8.7% GDP growth in the previous fiscal year, the seven percent growth projection for fiscal 2022–23 is unchanged from its September forecast.
December 2022 Current Affairs Quiz
Continuity Of Growth Prospects:
For the next fiscal year, FY 23-24, the GDP growth has been kept unchanged at 7.2 percent, “sustained by positive effects from structural reform and from public investment catalysing private investment”.
About Asia’s Growth Projection:
According to a report from the Manila-based bank, Asia’s economy would grow by 4.2 percent this year and 4.6 percent in 2023. The previously estimated expansion stood at 4.3 percent and 4.9 percent, respectively.
What The Report Pointed:
“While some recent high-frequency indicators are more favourable than expected — notably consumer confidence, electricity supply and purchasing managers’ indexes — others are a little less favourable, in particular exports, largely textiles and iron ore, and the index of industrial production of consumer goods,” the report said.
The Inflation Problem:
According to the report, inflation in the nation is still expected to rise to 6.7 percent in 2022–2023 before declining to 5.8 percent.
About India’s Bright & Dull Spots:
“In India, the economy grew by 6.3 percent in the second quarter (July-September) of the fiscal year 2022-23, reflecting contraction in public consumption of 4.4 percent even as exports grew by 11.5 percent despite the global slowdown,” ADB said.
On the supply side, the increase was led by the 9.3% increase in the service sector, which added 4.6 percentage points to GDP growth. Industry, by contrast, suffered a small contraction by 0.8 percent, dragged down by contraction in manufacturing and mining, ADB added.
What is ADB:
The Asian Development Bank is a regional development bank (ADB) established on 19th December 1966. It is headquartered in Manila, Philippines.
It was formed as a result of a resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East (ESCAFE) in 1963.
Main objectives of ADB:
The Asian Development Bank (ADB) envisions a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. It aims to eradicate extreme poverty in the region. In order to support social and economic development, ADB offers loans, grants, technical assistance, equity investments, and assistance to its members and partners. ADB facilitates policy dialogues, provides advisory services, and mobilizes financial resources through financing operations that tap official, commercial, and export credit sources.
ADB and India:
ADB is contributing to India’s fast, green and inclusive recovery from Covid 19, with investments in infrastructure, small enterprise development and social sector.
Some of the projects assisted by ADB include:
a credit agreement for USD 96.3 million to strengthen the state of Himachal Pradesh’s sanitation and water delivery systems. A $500 million loan to expand the metro rail network in Bengaluru. A USD 4.5 million Project Readiness Financing (PRF) loan to support urban mobility in Mizoram.
