The Asian Development Bank (ADB) has forecast a decline in the Indian economy in the current financial year 2020-21.
The Asian Development Bank (ADB) has projected a 9 percent decline in the Indian economy in the current financial year 2020-21. The Asian Development Outlook (ADO) 2020 update released by the ADB on Tuesday said that the economic activity in India has been badly affected due to coronavirus. This has also impacted consumer sentiment, which will cause a nine percent drop in the gross domestic product (GDP) during the current financial year.
However, the ADB estimates that there will be a big boom in the Indian economy in the next financial year 2021-22. ADB said that India's economic growth rate will be 8 percent in the next financial year due to the movement and opening of business activities.
ADB chief economist Yasuyuki Sawada said, "India imposed a strict lockdown to prevent the spread of the epidemic." This affected economic activities badly.
He said, 'The expansion of the capacity to control, investigate, monitor and treat the epidemic is important for the growth of the economy in the next financial year and beyond. These measures need to be implemented effectively, only then will the economy recover. '