ADB Sees India Growth At 5.5% in 2014

Manila based Asian Development Bank (ADB) said reforms brought by Indian Prime Minister Narendra Modi will help his country grow 5.5 per cent this year and, if they are extended, should lift growth to 6.3 per cent next year.

In its update to the 2014 outlook, ADB slightly trimmed its growth forecasts for developing Asia for this year and next, but said sliding prices for oil should help economies in the region push through with growth reforms.

Falling global oil prices present a golden opportunity for importers like Indonesia and India to reform their costly fuel subsidy programs, ADB said.

Developing Asia is now expected to grow 6.1 per cent this year, a tad below its 6.2 per cent forecast in September. Growth in 2015 was seen at 6.2 per cent, from 6.4 per cent previously.

Southeast Asia is expected to grow slower than previously thought in 2014 and 2015 due to a slackening in economies in the region. The region is seen growing at 4.4 percent in 2014, down from a previous estimate of 4.6 percent, and 5.1 percent in 2015 instead of 5.3 percent.