The annual economic publication of Asian Development Bank (ADB) titled Asian Development Outlook released on 2 October 2013lowered the India economic growth forecast for 2013-14 to 4.7 percent. It is significantly lower than the earlier projection 6 percent in April 2013.
Asian Development Outlook also forecasted the 2014-15 growth at 5.7 percent. This 5.7 percent growth projection for 2014-15 is however lower than the earlier forecast of 6.5 percent.
Asian Development Bank also noted that India’s inflation for 2013-14 would be at 6.5 percent, below the 7.2 percent forecast in April 2013.
Other highlights of the Asian Development Outlook
• Growth in developing Asia is forecast to decline marginally to 6.0percent in 2013 from 6.1 percent in 2012
• In the People's Republic of China, growth is expected to moderate to 7.6percent in 2013 from 7.7percent 2012.
• Slower growth in Asia's two giants hampers but does not hobble growth across Asia.
• Inflation in developing Asia is projected dipping to 3.6 percent in 2013 from 3.7 percent in 2012 as weaker growth and tepid commodity prices keep price pressures in check. Inflation is expected to return to 3.7percent in 2014.
• Prospective tapering of US quantitative easing has destabilized financial markets in developing Asia and other emerging economies, in particular India and Indonesia.
• Developing Asia faces the twin challenges of maintaining financial stability and sustaining growth.
• The recent turbulence in financial markets underscores the need for structural reform to sustain growth. Priority areas include foreign direct investment, industrial diversification, infrastructure and human capital, fiscal consolidation, and social protection.
• Governance is another key area for reform. Asia must make headway toward catching up with the advanced economies and matching their quality of governance. Focusing on strengthening public service deliver can provide immediate benefits to make growth more inclusive and create momentum for wider governance reforms.
About the Asian Development Bank (ADB)
• Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia.
• The main motto of the Asian Development Bank is to eradicate the poverty in Asia and Pacific.
• The headquarters of the Asian Development Bank located in Manila, Philippines.