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ADB Cuts India's GDP Growth Forecast For FY23 To 7%

The ADB said in a report that the Indian economy grew 13.5 per cent year-on-year (YoY) in the first quarter of 2022-23, Witnessing strong growth in services

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The Asian Development Bank (ADB) has downgraded India's economic growth projection for 2022-23 to 7 per cent from 7.2 per cent.

According to the bank, the step came due to the higher-than-expected inflation in India and monetary tightening by the Reserve Bank of India.

The ADB said in a report that the Indian economy grew 13.5 per cent year-on-year (YoY) in the first quarter of 2022-23, Witnessing strong growth in services.

The bank said, "The Russian invasion of Ukraine and its spillovers on global commodity markets remain a threat and negative pandemic developments, such as the emergence of new Covid-19 variants. Other risks are debt and fragilities, geopolitical tensions, food insecurity and climate change."

It also stated that developing Asia is now projected to grow more slowly, from 5.2 per cent to 4.3 per cent in 2022 and from 5.3 per cent to 4.9 per cent in 2023. The ADB also revised inflation forecasts from 3.7 per cent to 4.5 per cent for 2022 and from 3.1 per cent to 4.0 per cent for 2023—on higher energy and food prices.