ADB lowers India's FY22 GDP growth to 9.7%

Chennai: The Asian Development Bank has revised India’s GDP growth forecast for FY22 downwards to 9.7 per cent from 10 per cent projected in September 2021 as the manufacturing sector is expected to grow more slowly than anticipated. However, the bank has retained the GDP growth forecast for FY23 at 7.5 per cent.

India had witnessed a strong 20.1 per cent growth rebound in Q1 of FY22. This was followed by growth moderation in Q2 to 8.4 per cent, marginally below expectations as a chip shortage hindered the production and sale of automobiles and many electronic goods.

GDP growth nevertheless remained strong, driven by growth in private consumption at 8.6 per cent and in investment at 17.2 per cent. On the supply side, growth was broad based driven by strong expansion in services, particularly public administration and defence and in mining. Agriculture remained resilient at 4.5 per cent growth, the development bank said.