In its report, 'Asian Development Outlook (ADO) 2021', the Asian Development Bank (ADB) said that the Indian economy is likely to grow at 11% in the current financial year.

“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 on Wednesday.

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.

"Growth is gaining momentum across developing Asia, but renewed COVID-19 outbreaks pose a threat to recovery," ADB Chief Economist Yasuyuki Sawada cautioned.

"Economies in the region are on diverging paths. Their trajectories are shaped by the extent of domestic outbreaks, the pace of their vaccine rollouts, and how much they are benefiting from the global recovery," the Chief Economist said.

The report projects that most economies in developing Asia will see healthy growth this year and in 2022.

Developing Asia comprises 46 members of ADB list on the basis of geographic group. These include new industrialised economies, countries in Central Asia, East Asia, South Asia, Southeast Asia and the Pacific.

The report said in China, strong exports and a gradual recovery in household consumption will boost economic activity this year.