Indian Economy contracted by 4% in 2020-2021 - ADB Report.
                     Indian  Economy  contracted  by  
4% in 2020-2021 - ADB Report
INTRODUCTION
• The Indian economy is expected to contract by 4% during 
the current financial year due to pandemic COVID 19.
• Countries in Developing Asia will "barely grow" in 2020, 
as per the ADB forecast.
Image source: Google image
SLOWEST GROWTH IN INDIAN ECONOMY
• Growth in Indian GDP slowed to 3.1 per cent in the last 
quarter of financial year 2019.
• Economic growth slowed to 4.2 per cent in the whole of 
FY2019 is the slowest since early 2003.
Image source: Google image
EXPECTED GROWTH IN FUTURE
• Migrant workers have gone home to their villages after 
will be slow to return even after containment measures 
are relaxed.
•  GDP is expected to contract by 4.0 per cent in FY2020 
before rebounding by 5.0 per cent in FY2021.
Image source: Google image
CHINA WITH POSITIVE EXPECTED GROWTH
• China, is expected to record a positive growth of 1.8 per 
cent in 2020, sharply down from 6.1 per cent in 2019.
Image source: Google image
IMPACT OF COVID-19
• containment measures to address the Covid-19 pandemic 
is expected to hamper economic activity. 
• Developing countries are expected to grow by 0.1% in 
2020.
Image source: Google image
ECONOMY IN ASIA
• Economies in Asia and the Pacific will continue to feel the 
blow of the Covid-19 pandemic this year.
• Even as lockdowns are slowly eased and select economic 
activities restart in a 'new normal‘.
Image source: Google image
ECONOMY IN ASIA
• Hit hard by Covid-19, South Asia is forecast to contract by 
3 per cent in 2020, compared to 4.1 per cent growth.
•  Growth prospects for 2021 are revised down to 4.9 per 
cent from 6 per cent, ADB said.
Image source: Google image
IMPACT OF USA~CHINA TRADE
• There is also the risk of renewed escalation in trade 
tensions between the United States and the People's 
Republic of China (PRC).
• This can affect Indian economy as well.
Image source: Google image
OUTLOOK OF RBI
• The Reserve Bank of India projected a gloomy picture of 
the economy, saying the impact of Covid-19 is more 
severe than anticipated.
• RBI announced a 40-basis point cut in the repo rate as 
part of the monetary measures to deal with the current 
crisis.
Image source: Google image
THANK YOU