The Asian Development Bank, in its latest review on Thursday, maintained that India was likely to register a growth rate of 7.8% in 2015 backed by improved performance in both industry and services while structural bottlenecks are expected to be addressed.
However, ADB lowered China's growth estimates to 7% this year as compared to its earlier projection of 7.2%. It also lowered its growth projection for 2016 to 6.8% from 7% projected in March.
According to ADB, with a supportive monetary and declining inflation rate India's growth rate could further increase to 8.2% in 2016. A pick-up in capital expenditure is also expected.
Meanwhile, due to slower growth in the most populous country of Asia, the bank has reduced its growth forecasts for developing Asia to 6.1% in 2015 and 6.2 % in 2016 as against 6.3% projected earlier for both the years.