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ADB forecast of Indian Economy
Why is it in news?
- The Asian Development Bank (ADB) upgraded its forecast for the Indian economy.
- ADB cites faster-than-expected recovery of Indian economy.
Details:
- ADB projected 8% contraction in 2020-21 as compared to 9% estimated earlier.
- The economy had contracted by 23.9% in the June quarter on account of the impact of the pandemic.
About Inflation:
- Inflation was expected to ease in the coming months. ADB maintained the 4% projection for 2021-22.
- Supply chain disruptions had taken food inflation to an average of 9.1% in the first 7 months of 2020-21. It had pushed headline inflation to 6.9% in the same period.
- As a result, the ADB raised India’s inflation projection for the current fiscal to 5.8%, from 4.5%.
About Asian Development Bank(ADB):
- ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
- ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
- It is modeled on the World Bank.
- It has similar weighted voting system where votes are distributed based on member's capital subscription.
- India has about 6% voting rights (4th highest, Japan highest and USA second highest)
- ADB is composed of 67 members, 48 of which are from the Asia and Pacific region.
- It is Headquartered in Manila, Philippines.