22:33 GMT04 August 2020
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    India’s recovery from the economic deceleration during the last quarter has been sluggish due to rising crude oil prices and cold private investment growth, according to the ADB.

    New Delhi (Sputnik) — The Asian Development Bank (ADB) has lowered India's growth forecast for the year 2017 even as the outlook for other Asian economies including China remained impressive. The revised forecast released by the ADB on Wednesday said that India's GDP growth would be limited to 6.7% as against an earlier forecast of 7%.

    "Although the strong manufacturing expansion helped the economy reverse five consecutive quarters of deceleration in the second quarter of the fiscal year 2017, the recovery is more subdued than assumed earlier due to rising crude oil prices, soft private investment growth, and weather-related risks to agriculture," ADB said in a statement.

    The bank has also lowered India's growth projection for 2018. India's economy is projected to grow by 7.3 percent, slower than ADB's previous estimate of 7.4 percent.

    Meanwhile, economic expansion in developing Asia will accelerate to 6% in 2017 as stronger than expected exports and domestic consumption continues to fuel growth.

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    "Developing Asia's growth momentum, supported by recovering exports, demonstrates that openness to trade remains an essential component of inclusive economic development," said Yasuyuki Sawada, ADB's Chief Economist.

    The ADB was established in 1966 to reduce poverty in Asia and the Pacific region as well as to contribute to economic growth and integration of the regional countries. The bank's headquarters is located in Manila. According to the website of the institution, the bank has provided Afghanistan, which is one of its founding members, more than $4.7 billion in grants and loans.

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    The Chinese economy — the world's second-largest economy — is projected to expand by 6.8 % this year, higher than the ADB's September estimate of 6.7%, on strong consumer demand.

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    Tags:
    employment, economic growth, Asian Development Bank (ADB), India, China, Asia
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