ADB's growth estimate for India conservative

Bank says India will grow at 8.2 percent this year while Asia grows at 7.9 pc

GN Bureau | July 21, 2010




Manila-based Asian Development Bank (ADB) has projected India's growth at 8.2 percent in the current fiscal, which is lower than International Monetary Fund’s (IMF) revised prediction of 9.4 percent for India this year.

Finance minister Pranab Mukherjee had said that the govt was sticking to a more conservative 8.5 percent growth at the CII summit on Monday.

While India’s growth remained unchanged, in a revised special note, the Asian Bank has, however, revised its South Asia forecast to 7.5 from 7.4 pc.

It also has a new growth figure for Asia. The Gross domestic product (GDP) is now projected to grow 7.9 percent for the continent, up from the 7.5 percent originally forecast. “The improved outlook is broad-based, with projections raised across most subregions,” said the bank in its statement.

The ADB has also maintained China’s growth at 9.6 percent to be same with its April figure. “Recent measures to slow credit growth and cool speculation in the property market will likely lead to slower investment in the coming quarters,” the Bank noted in its statement.

The ADB's predictions have also come with a warning.

“The ADB warns downside risks in the second half of the year including uncertain global environment, unpredictable private domestic demand, and the risks of dramatic capital flows and exchange rate fluctuations,” says the bank in its report.

Revised special note of the growth projection

April’s Development Outlook 2010 forecast

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