ADB pegs India's 2017-18 growth at 7.4%

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.

Also read: Asian Development Bank trims growth forecast for Asia due to slowdown in India

"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%.

Also read: This is how you know something desperate is going on in China's economy

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)