Economic growth of India 5.8 % : ADB predicts

New Delhi, July 16 – An Asian Development Bank (ADB) report has predicted that the economic growth of india to be 5.8 percent in 2013. As per the bank earlier it was projected as 6 percent .the bank said that Slow progress of economic reforms is reason to pull down India's growth

 

"In India…slow progress in pushing through the reforms needed to ease business bottlenecks means growth is likely to be 5.8 per cent this year, slower than the previously forecast 6.0 per cent," the report 'Asian Development Outlook Supplement' said.

 

Meanwhile, finance minister P Chidambaram in Jaipur said on Tuesday that India was likely to clock over 6 per cent growth in the financial year 2013-14, in the backdrop of government taking host of steps to boost sagging economy.

 

India's growth fell to a decade's low of 5 per cent in fiscal 2012-13. ADB in April had projected a growth rate of 6 per cent for India in 2013.

 

It further said the projected growth at 5.8 per cent in 2013 will be "higher than the 5.0 per cent posted in 2012, growth remains constrained by supply-side bottlenecks, as reflected in the continued slowdown in fixed capital formation, weakness in the industrial sector, and sluggish progress in pushing through badly needed structural reforms."

 

The growth rate, it added, is expected to accelerate in 2014 as slower inflation provides some scope for monetary easing that could boost investment and consumption.

 

TOI