Asian Development Bank praises India’s GDP growth, says its ‘amazingly fast’

New Delhi, May 7: Proceeding ahead of the Goods and Service Tax growth in the economy, the Asian Development Bank has lauded India’s growth in Gross Domestic Product (GDP). The Asian Development bank commented that India’s projected GDP growth of over 7% for the current fiscal year is amazingly fast and if the momentum is maintained the economy will growth will double in a decade time.

Stating the same in the Asian Development Outlook magazine, it said that India will lift growth above 7%, making it the fastest growing sub-region in developing Asia.

Commenting on not reaching the estimated growth rate of 8%, ADB Chief Economist Yasuyuki Sawada said that India should not worry about not achieving 8% growth but focus on increasing domestic demand by reducing the income inequality. According to him growth is driven more by domestic consumption rather than exports.

Focusing on development, inequality and poverty reduction would play a very important role in achieving higher growth because consumption can encourage more production and that can create more employment.

Inciting to tap the broadening market, it will be important to achieve higher growth, adding that the services sector too would play a role in pushing up economic growth. ADB has projected India to remain the fastest growing Asian nation with 7.3% growth in 2018-19, and 7.6% in 2019-20.