ADB Raises India’s Growth Forecast to 6 Percent
Sept. 22 – The Asian Development Bank (ADB) has changed its growth forecast for India to 6 percent from 5 percent in March on the strength of the country’s stimulus measures and monetary policies.
The bank also predicts that India’s economy will expand by seven percent next year. “The government’s strong fiscal stimulus, complementing the Reserve Bank of India’s aggressive monetary policy easing, has successfully brought last year’s economic slowdown to an end,” ADB chief economist Jong-Wha Lee said in statement.
ADB noted that India has increased public spending, improved capital inflows, and reported positive industrial output thus strengthening business confidence. However, the economy will still be badly hit by this year’s weak monsoon, weakening exports and raising food prices.
The bank has noted that India’s “adroit economic management in the form of fiscal stimulus packages and accommodative monetary policy has minimized damage from the global financial crisis,” adding that this is “supporting a relatively strong economic expansion again.”