Home / Economy / News / ADB sees Indian economy shrinking 4% in FY21 after growth call earlier

ADB sees Indian economy shrinking 4% in FY21 after growth call earlier

IMF remains only major outlier predicting growth for the economy, is likely to be on same page with others next week

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The Manila-based Bank said fuel prices in India softened in May 2020, but food inflation stayed elevated at 7.4% year-on-year as supply faltered

Indivjal Dhasmana New Delhi

2 min read Last Updated : Jun 25 2020 | 3:46 PM IST

The Asian Development Bank (ADB) on Thursday projected India’s economy to contract by 4 per cent in the current financial year against its earlier prediction of a growth of 4 per cent, as measures to contain the spread of Covid-19 significantly disrupted activities.

“GDP is expected to contract by 4 per cent in FY21 before rebounding by 5 per cent in FY22,” ADB said in its Asian Development Outlook Supplement.

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With this, the International Monetary Fund (IMF) remains the only major outlier which has projected India’s economy

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