MANILA: The Indian economy is projected to grow at 11 % in the current financial year amid the "strong" vaccine drive, said ADB on Wednesday, while cautioning that the recent surge in COVID cases may put the country's economic recovery at "risk". "India's economy is expected to grow 11 % in fiscal year (FY) 2021, which ends on March 31, 2022, amid a strong vaccine drive," ADB said in its flagship Asian Development Outlook (ADO) 2021 released.

However, the Asian Development Bank (ADB) cautioned that the surge in COVID-19 cases may put the country's economic recovery at risk.

For FY2022, India's GDP is expected to expand at 7 %, it added.

Further, it said the gross domestic product (GDP) of South Asia is expected to rebound to 9.5 % this year, following a contraction of 6 % in 2020, before moderating to 6.6 % next year (2022), it said.

ADB said the economic growth in developing Asia is set to rebound to 7.3 % this year, supported by a healthy global recovery and an early progress on COVID-19 vaccines. The projected resurgence follows a 0.2 % contraction last year.