ADB leaves India's growth projections unchanged, China's lowered

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.

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.