The ADB in its report the growth rate of the country remained on the high side—4.1% compared to its 2014 forecast of 3.4%, which is 0.7 percent above the expected growth.
The report said that the inflation rate in the country will likely to go down this year with a stable rupee, which will help to curb inflationary tendencies.
The improved outlook in India pushes up the regional forecast for 2015 from 5.8% to 6.1% and overall, South Asia’s 2014 forecast is nudged up 0.1 percentage points to 5.4%, it said.
The ADB has maintained its growth forecast for India at 5.5 per cent for fiscal year (FY) 2014 but has upgraded its FY2015 forecast by 0.3 percentage points to 6.3 per cent in the Asian Development Outlook.
According to the report, quarterly growth in China met ADB expectations with steady consumer demand, targeted government measures to stabilize investment, and a pickup in external demand in the second quarter of 2014. Both retail sales and industrial production have been picking up pace. Overall, China is on track to meet ADO 2014 forecasts of 7.5% growth in 2014 and 7.4% in 2015, it said.
