India’s GDP to Contract 9% for FY 2020-21

Published on September 16, 2020
Current Context: The Asian Development Bank (ADB) has forecasted that India’s GDP to contract 9% for the financial year 2020-2021.
India’s GDP to Contract 9% for FY 2020-21 

  • This projection by ADB is published in its ‘Asian Development Outlook 2020 Update-September 2020’. 
  • ADB has mentioned the reason that the economic growth has slowed down because of the outbreak of coronavirus, which has affected the economy of India. 
  • However, ADB has forecasted that GDP will grow by 8% in FY 2021-2022. 
  • As per projection, inflation is expected to reduce in the remainder of FY2020 to 4.5% with rising food prices and decreased economic activities and then it will reduce to 4% in FY 2021.
  • As per ADB, the current account deficit for India is expected to shrink to 0.3% of GDP for this fiscal year. In FY 2022, it will then widen to 0.6% of GDP. 
  • ADB has also forecasted that developing Asia’s GDP to contract by 0.7% in FY 2020. 
  • Static Part: 
    • HQ of ADB: Mandaluyong, Philippines
    • President of ADB: Masatsugu Asakawa

Question: 

Q.1 The Asian Development Bank (ADB) has forecasted that India’s GDP to contract ___% for the financial year 2020-2021? 
a. 8.5%
b. 9%
c. 10.5%
d. 9.5%

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