India’s growth estimate is retained at 5.5% in the current fiscal but could expand at a much higher 6.3% in 2015-16, said the Asian Development Outlook Supplement (ADOS) that was released on Wednesday.
The Asian Development Bank trimmed growth forecasts for most of developing Asia for 2014 and 2015 but expressed hope that sliding crude oil prices could boost growth by at least 0.5% in most economies.
FORECAST FOR INDIA & THE WORLD
* India is on track to meet its growth estimates driven by continued services sector growth and progress on reform to support investment.
* While diesel subsidies have been eliminated, the government must extend its efforts to other areas. But pressure on fiscal deficit remains due to high government spending in the first half of 2014-15.
* In India, tight monetary policy and a dip in economic activity have tempered price pressures, slowing consumer price inflation. However, the expected uptick in growth should spark slightly higher inflation in 2015-16.
* The pace of recovery in the major economies is revised down slightly.
* The recovery in the US has been somewhat stronger than the expectations underlying.
* Several governments have taken advantage of sharply lower oil prices to rein in fuel subsidies, offsetting their mitigation of inflation.
GDP GROWTH IN MAJOR ECONOMIES (in %)
