The Asian Development Bank (ADB) has lowered growth projections for India for the current fiscal to 7.4 per cent, from the 7.8 per cent earlier. The reasons behind the lowered projections are weak monsoon, poor external demand and inability of the government to push economic reforms in Parliament.
Though ADB, in its update on Asian Development Outlook (ADO), retained the consumer inflation forecast for India at 4 per cent (plus/minus 0.2 per cent), it cautioned that a possible increase in prices of crude oil in the international market could have adverse implications for prices. In March, ADO had forecast a growth rate of 7.8 per cent for 2015-16 and 8.2 per cent for 2016-17.
The report further said because of slowing growth in India and also China, the growth forecasts for GDP in the region has been revised down to 5.8 per cent in 2015 and 6.0 per cent in 2016 from the March estimate of 6.3 per cent for both years.
Asian Development Bank
- The Asian Development Bank (ADB) was established on 22 August 1966 to facilitate economic development in Asia.
- It is headquartered in Metro Manila, Philippines.
- The ADB was modeled closely on the World Bank, and has a similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions.
- ADB now has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.
Test Your GK
In September 2015, ADB and India Sign $500 Million Loans to Improve Urban Services in which Indian State?
In September 2015, Asian Development Bank extended a loan of $ 200 million to which state for upgrading roads?
The Fiscal Year in India is
