The Indian economy is projected to grow at 11 per cent in the current financial year amid the ‘strong’ vaccine drive, said Asian Development Bank (ADB) on Wednesday, while cautioning that the recent surge in COVID cases may put the country’s economic recovery at ‘risk’. “India’s economy is expected to grow 11 per cent in FY 2021, which ends on March 31, 2022, amid a strong vaccine drive,” ADB said in its flagship Asian Development Outlook (ADO) 2021 released on Wednesday.

For FY 2022, India’s GDP is expected to expand at 7 per cent. Further, it said the Gross Domestic Product (GDP) of South Asia is expected to rebound to 9.5 per cent this year, following a contraction of 6 per cent in 2020, before moderating to 6.6 per cent next year.

ADB said the economic growth in developing Asia is set to rebound to 7.3 per cent this year, supported by a healthy global recovery and early progress on COVID-19 vaccines. The projected resurgence follows a 0.2 per cent contraction last year. “The region’s growth is forecast to moderate to 5.3 per cent in 2022. Excluding the newly industrialized economies of Hong Kong, China; the Republic of Korea; Singapore; and Taipei, China, developing Asia’s economic activity is expected to grow 7.7 per cent this year and 5.6 per cent in 2022,” the report said.
The report projects that most economies in developing Asia will see healthy growth this year and in 2022. Developing Asia comprises 46 members of the ADB list on the basis of geographic group. These include newly industrialized economies, countries in Central Asia, East Asia, South Asia, Southeast Asia, and the Pacific.