Asian Development Bank (ADB), the regional development bank headquartered in Phillippines, has said that India's growth rate will improve to 7.4% during 2017-18, further rising to 7.6% in the next fiscal. It added that Indian economy would stay ahead of neighbour China.
"The impact of the demonetisation of high-value banknotes is dissipating as the replacement banknotes enter circulation. Stronger consumption and fiscal reforms are also expected to improve business confidence and investment prospects in the country," said a report in Asian Development Outlook, ADB's flagship economic publication.
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"In India, the sub-region's largest economy, growth is expected to pick up to 7.4% in fiscal year (2017-18) and 7.6% in 2018-19, following the 7.1% registered last FY," it said.
During FY 2016-17, India recorded a growth rate of 7.1%, notwithstanding the fear of adverse effects of demonetisation on the economic growth.
As about China, the overall output was pegged at 6.5% for 2017 and 6.2% in 2018; in 2016, it was 6.7%.
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The report further said that South Asia would continue to be the fastest growing of all subregions, and its combined growth would touch 7% in 2017 and 7.2% in 2018.
(Image source New Indian Express)