Indian economy to shrink 9% in FY21, says ADB

India’s COVID-19-battered economy will shrink by 9% this fiscal, the Asian Development Bank (ADB) predicted, saying growth outlook remains highly vulnerable to either a prolonged outbreak of the pandemic or a resurgence of cases

In its Asian Development Outlook 2020 Update, ADB forecasts a strong recovery for the economy in FY21, with gross domestic product growing by 8% as mobility and business activities resume more widely. “India imposed strict lockdown measures to contain the spread of the pandemic and this has had a severe impact on economic activity,” said ADB chief economist Yasuyuki Sawada.

Last week, two global rating agencies Moody’s and Fitch projected the Indian economy to contract 11.5% and 10.5% respectively in the current fiscal.