New Delhi, Sep 26, 2018 (BSS/PTI) – India’s economy continues on a robust
growth path, the Asian Development Bank (ADB) said Wednesday while
maintaining the growth forecast for the current fiscal at 7.3 per cent.
However, depreciation of the rupee and volatile external financial markets
pose challenges, the multilateral lending agency added, in an update of its
flagship annual economic publication, the Asian Development Outlook (ADO)
2018.
Growth remains stable across most of developing Asia due to robust domestic
demand, buoyant oil and gas prices and a consolidation of India’s growth
rebound, it said.
“But escalating trade tensions will test the region’s resilience,
underscoring the importance of efforts to bolster trade ties among its
countries,” it added.
On India, the report said its economy continues on a robust growth path.
“Its growth forecasts are unchanged at 7.3 per cent for 2018 and 7.6 per
cent for 2019 as the temporary effects of the demonetisation of large
banknotes and the introduction of the national Goods and Services Tax abate
as expected,” it said.
The report further said the impact of the rising oil prices is offset by
robust domestic demand and rising exports, particularly of manufactures.
“Depreciation of the rupee and volatile external financial markets pose
challenges, as does accelerating inflation though tighter fiscal policy will
help quell inflationary pressures,” said the report of the Manila-based
development bank.