India's economy will remain on a strong growth path this fiscal year (FY) and next, aided by implementation of key structural reforms, robust consumer demand, and higher agricultural output driven by a good Summer monsoon, says a new Asian Development Bank (ADB) study.
In an update of its flagship annual economic publication, Asian Development Outlook 2016, ADB forecasts FY2016 (year to March 2017) gross domestic product (GDP) growth of 7.4%, unchanged from its March projection. FY2017 growth is also seen unchanged at a faster clip of 7.8%.
"With increasing investment over the coming year, India will remain the fastest growing major economy in the world," said Juzhong Zhuang, Deputy Chief Economist. "Legislation to allow a national value-added tax is a milestone reform for India, while ongoing efforts to restructure bank balance sheets will help underpin faster growth moving forward."
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