The Asian Development Bank (ADB) has revised India’s growth projections to 9.7 per cent for this financial year from the earlier 10 per cent owing to supply chain challenges affecting the industry. The Manila based multilateral agency retained India growth projections for the next fiscal year at 7.5 per cent. 

According to the revised projections by the ADB, South Asia is expected to grow 8.6 per cent in 2021, compared with September’s forecast of 8.8 per cent. The ADB in a statement also said that the subregion’s 2022 outlook remains at 7.0 per cent.

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“India, South Asia’s largest economy, is now expected to grow 9.7% in fiscal year (FY) 2021, which ends 31 March 2022. The reduction of 0.3 percentage points comes amid supply chain issues that are affecting industry,” the statement said.

For the country’s policymakers and industry captains, emergence of the Omicron variant of Covid 19 virus has also become a cause for concern. So far, India has administered 134 crore vaccines. As many as 51.8 crore people are fully vaccinated.

Meanwhile, the ADB also said that regional inflation is expected to remain manageable at 2.1 per cent in 2021 and 2.7 per cent in 2022, allowing for a more accommodative monetary policy and supporting pandemic recovery efforts, the ADB said.