ADB lowers India’s growth forecast for 2015-16 to 7.4%
The Asian Development Bank (ADB)lowered growth projections for India for the current fiscal to 7.4 per cent, from the 7.8 per cent earlier, citing 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.
It also cautioned that “weak monsoon, flagging external demand, and stalled parliamentary action on structural reforms, including a revamped domestic tax system and eased restrictions on land acquisition and labour, are expected to slow the economy”.
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 (ADB)
Foundation Date : December 19th 1966
Headquarter : Manila
President : Takehiko Nakao
Member Countries : 67
ADB was conceived amid the postwar rehabilitation and reconstruction efforts of the early 1960s. The vision was of a financial institution that would be Asian in character and foster economic growth and cooperation in the region – then one of the poorest in the world.
A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.
The Philippines capital of Manila was chosen to host the new institution – the Asian Development Bank – which opened on 19 December 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe was ADB’s first President.
For the rest of the 1960s, ADB focused much of its assistance on food production and rural development. Its operations included ADB’s first technical assistance, loans, including a first on concessional terms in 1969, and bond issue in Germany.