Gross Domestic Product (GDP) of India was forecasted to rise to 5.5 percent in 2014-15. This was revealed by the Asian Development Outlook 2014. The report was released on 1 April 2-014 by the Asian Development Bank.
The highlights of the Report with respect to India
• The rise in the GDP was due to improvement in the performance of the Industry and services. However, the report pointed out that it will take some time for the Indian economy to reach its potential growth rate of 6%.
• The GDP growth in 2015-16 is expected to be 6.0 per cent.
• India appears to be bottomed out, but the economy will not reach its potential until remaining structural bottlenecks are not addressed in industry and investment.
• The Cabinet Committee on Investment progress in resolving delays in several large infrastructure projects is likely to provide traction in raising investment. Improved global growth prospects and competitiveness gains from currency depreciation will bolster external demand.
• India’s policy challenge is to create significantly more productive and well-paying jobs which are vital to sustain high growth and ensure it is inclusive.
• India’s manufacturing sector has so far performed below its high potential. National Manufacturing Policy identifies a number of constraints in the sector and has proposed initiatives. The successful implementation of the various initiatives in the policy will be necessary to ensure perform at or close to potential.
According to Central Statistical Office (CSO), the GDP is estimated to clock a growth rate of 4.9 percent in 2013-14 due to constrains in slow industrial growth, contracting manufacturing output, weak investment, and a reduction in private consumption.
About Asian Development Outlook
The annual Asian Development Outlook provides a comprehensive analysis of economic performance for the past year and offers forecasts for the next 2 years for the 45 economies in Asia and the Pacific that make up developing Asia.