Augmenting an upswing in GDP, India retains its position as the “Fastest Growing Economy in Asia”

New Delhi, July 21: India’s stance on the growing economy which is quite evident to the whole world with the Gross Domestic Product (GDP) seeing an upscale rise strengthening its position. India will continue to be the fastest growing major economy, ahead of China, with a 7.3% growth rate in 2018-19 and 7.6% in 2019-20.

 

Asian Development Bank in its supplement Asian Development Outlook stated that the growth in India will be driven by increased public spending, higher capacity utilization rate and an uptick in private investment. Developing Asia continues to enjoy steady growth and flexible prospects. The growth prospect can be seen from both the solid export demand and rapidly expanding domestic demand.

While recalling India's growth rate for current fiscal and the next, ADO said economic growth in China will decelerate to 6.6% in 2018 and further to 6.4% in 2019. China's growth rate was 6.9% in 2017.

 

The Asian Development Outlook stated that India is all set to rebound from a dip in growth following reforms. The country can achieve this aimed prospect by its improved business regulation and resilient tax revenues which will help bolster the growth.

On India, it said: “In sum, the GDP growth forecast for FY2018 (ending March 2019) is maintained at 7.3%. Growth in FY2019 is expected to rise to 7.6% as measures are taken to strengthen the banking system bolster private investment and as benefits kick in from the goods and services tax. Any further increase in oil prices poses a downside risk to growth.”

ADB said India is the dominant economy in the South Asia sub-region with its growth gaining momentum at 7.7% in the last quarter ended March of 2017-18, the highest rate of growth since the first quarter of 2016-17.

This pushed full-year growth to 6.7% (2017-18), a bit higher than estimated in ADO 2018, largely driven by government spending for both consumption and public administration.