It forecast that India’s growth will improve from 7.4% in current fiscal to 7.8% in 2015-16 and further to 8.2 per cent in 2016-17.
As regards China, the ADB projected the economic growth to decelerate from 7.4% in current fiscal to 7.2% next fiscal and 7% in 2016-17.
India’s growth and investor confidence will improve on the back of government’s structural reform agenda and improved external demand, the Asian Development Outlook (ADO), an annual publication of the ADB, said.
ADB’s estimates is, however, lower than the 8 – 8.5% growth estimates of Indian government for the 2015-16 fiscal beginning April. It is better than 7.5% projection by the International Monetary Fund (IMF).
It said the measures undertaken by the government including accelerating environment clearances for infrastructure projects, easing the process of land acquisition for infrastructure and industrial corridors, allowing auction of coal mines to the private sector, and easing the compliance burden of labour laws on small and medium-sized industries would help boost growth.
The ADB said that India’s most pressing policy challenges is to promote cities as engines of economic growth and jobs.