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BUSINESS EYE JULY 29, 2022 | The Indian Eye 34

ADB cuts India GDP forecast for FY23 to

7.2% on Covid, war impact amid inflation

Private investment will soften due to higher cost of borrowing for firms as the RBI

continues to raise policy rates to contain inflation

OUR BUREAU projection. This mainly reflects a
modest downward revision to In-
New Delhi
dia’s forecast GDP growth due to
sian Development Bank higher-than anticipated inflation
(ADB) on Thursday trimmed since April and monetary tightening,
AIndia’s economic growth fore- and Sri Lanka’s sharp GDP contrac-
cast for current fiscal year to 7.2 per tion due to the country’s sovereign
cent from 7.5 per cent as pandemic debt and balance-of-payment crises.
and war impact is weighing down For India, it said net exports
alongside inflationary pressures. In- will shrink due to subdued global
dia, however, will continue to surpass demand and a rising real effective
China which is expected to grow by 4 exchange rate eroding export com-
per cent in 2022 as against the earlier petitiveness despite a depreciating
estimate of 5 per cent. In 2023 also, rupee.
China is expected to grow by 4.8 per On supply side, higher commod-
cent. ity prices will boost mining industry.
In April, the Manila-headquar- But manufacturing firms will bear
tered multilateral funding agency the brunt of higher input costs due
had forecast the Indian economy to to rising oil prices.
grow by 7.5 per cent. For India, ADB The services sector, hit hard by
also revised downwards the econom- Rising prices have severely affected people’s purchasing capacity in India (ANI) COVID-19 since 2020, will do well
ic growth in fiscal ended March 2022 in FY2022 and beyond as the econ-
to 8.7 per cent from 8.9 per cent esti- er-than-expected inflation will erode firms as the RBI continues to raise omy opens up and travel resumes.
mated earlier. consumer purchasing power,” ADB policy rates to contain inflation. “The economic impact of the pan-
“India has been hit by the omi- said in its supplement to the Asian For South Asian region -- which demic has declined across most of
cron Covid-19 variant and the eco- Development Outlook (ADO) for includes India -- it has lowered the Asia, but we are far from a full and
nomic impact of the war in Ukraine. 2022 released on Thursday. Some growth forecast from 7 per cent to sustainable recovery,” said ADB
Consequently, GDP growth for of the impacts of this may be offset 6.5 per cent for 2022 and from 7.4 Chief Economist Albert Park.
FY2021 is revised down from 8.9 per by a cut in excise duties, provision per cent to 7.1 per cent for 2023, On India’s inflationary outlook,
cent to 8.7 per cent and from 7.5 per of fertilizer and gas subsidies, and mainly due to economic crisis in Sri ADB said for FY2022 it is revised up
cent to 7.2 per cent for FY2022 (fis- extension of a free food distribution Lanka and high inflation and associ- from 5.8 per cent to 6.7 per cent on
cal to be ending in March 2023). programme. ated monetary tightening in India. higher-than-expected oil prices. The
“Although consumer confi- Private investment will soften South Asia’s economy is expect- inflation projection for FY2023 is
dence continues to improve, high- due to higher cost of borrowing for ed to expand less than ADO 2022’s raised from 5 per cent to 5.8 per cent.

Ashish Chauhan named new chief of NSE

shish Chauhan, chief exec- once his 10-year stint at BSE ends where he worked from 1992 to
utive of BSE Ltd, will be in November, a person aware of the 2000.
Athe new chief of the Na- matter said. Under him, the Bombay Stock
tional Stock Exchange of India The appointment comes after Exchange has taken the leader-
Ltd (NSE), with the markets reg- Vikram Limaye’s term as managing ship position in setting up a small
ulator approving his appointment director, and chief executive officer and medium enterprises platform
on Sunday. The Securities and ended on 16 July. and introducing offer for sale and
Exchange Board of India (Sebi) Chauhan is a mechanical engi- mutual fund distribution through
has cleared a five-year term for neer from IIT-Bombay and an alum- exchanges.
Chauhan as managing director nus of IIM Kolkata. He started work- While at the NSE, he was also
and chief executive officer, NSE, ing at the Industrial Development responsible for market operations,
India’s largest stock exchange, said Bank of India (now IDBI Bank) in membership, clearing and settle-
in a statement. 1991. Chauhan is credited with mod- ment, surveillance, rules, sales,
The appointment is subject ditions, including approval from the ernizing financial derivatives in India marketing, information technol-
to Chauhan accepting the offer shareholders of NSE, the statement and screen-based trading. He is one ogy, and property management,
and fulfilment of terms and con- said. Chauhan will take over at NSE of the founding members of NSE, among others.

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