Asian Development Bank (ADB) forecast on Tuesday a handsome 8.2 per cent GDP growth for India, but cautioned that policy makers will have to do a tight balancing act to protect growth from rising prices.
“India’s rebound from the global crisis is set to accelerate in 2010, with estimated growth of 8.2 per cent, although rising price pressures present a challenge to policy makers as they steer the economy’s recovery,” the ADB said in Asian Development Outlook 2010, its flagship annual publication released today.

The bank observed that annual inflation in 2010 was seen to be five per cent, rising to 5.5 per cent in 2011.
“The outlook is for a return of high growth, although this will require continued apt handling of macroeconomic policies, and to sustain long-term growth it will be essential to address infrastructure bottlenecks and to reform agriculture,” ADB Chief Economist Jong-Wha Lee was quoted as saying.
To counter the trend in rising food prices and to strengthen agricultural output, which fell an estimated 0.2 per cent in 2009, will require a range of measures, including boosting farmgate prices, and addressing distribution, trade, research, and subsidy constraints.

The report suggested more government spending on infrastructure was needed.
It also said that exports and imports were set to rebound further as the global economy recovered. Exports will rise 16 percent in 2010 and 12 percent in 2011 and imports will grow up 20 percent in 2010 and 18 percent in 2011.
The ADB estimated growth figure at 8.7 percent in 2011 is slightly below the Indian government's forecast of 9 percent.