India's growth rate is fastest in Asia, estimated at 7.3 percent in 2018-19

In its report released on Wednesday, Asian Development Outlook (ADO), the bank says that India will be the fastest growing country in Asia

New Delhi: Asian Development Bank (ADB) estimates that during the current business year, beginning from 1st April 2018-19, the breakdown in growth rate for two years will take a break and this rate will be 7.3 percent. At the same time, in the next business year i.e. in 2019-20, this rate can be accelerated to 7.6 percent.

In its report released on Wednesday, Asian Development Outlook (ADO), the bank says that India will be the fastest growing country in Asia. The reason for this is that China's growth rate is expected to drop to 6.9 per cent in 2017, 6.6 per cent in 2018 and 6.4 per cent in 2019. The bank believes that the United States has yet to see the impact of trade protection policies on the import and export of Asian countries. However, the bank wants India to be cautious about such a move.

According to the bank, reforms like commodity and service tax i.e., GST may have got some bad effects in some time but due to these reforms, the pace of growth will be faster in the coming days. While foreign investment is increasing due to liberalization, the government's efforts to facilitate the business environment will also have a good effect on the development. The bank believes that the ban on bonds affected the growth rate during the financial year 2017-18 due to which the rate was estimated to be 6.6 per cent, whereas in the year 2016-17 it was 7.1 per cent. Keep in mind that the ban was imposed on 8 November 2016.

According to the bank, increasing the procurement of agricultural produce to increase the pace of growth, the increase in the income of farmers, improvements in the agricultural market and more investment for irrigation such as facts will play an important role. Well, the situation of investment is expected to improve, but the pace will be slow, because the banks are trying to repair their balance sheet, while the companies want to exploit their existing capacity completely first.

The report on inflation is said to be 4.6 per cent in the current business year and 5 per cent next year. Since prices of commodities are increasing throughout the country, as well as the situation of domestic demand improving, its impact can be seen at inflation rate. Since the goal of deficit reduction in government treasury has already been increased, the US Federal Reserve is also in the process of raising interest rates, in such a situation, the current interest rate is not expected to decrease in repo rates.

The increase in the price of crude oil in the bank's opinion is a big risk. India imports nearly three quarters of its requirement every year, in which economists believe that the rise in crude oil prices in the international market may have an impact on the growth. Keep in mind that the Indian basket of crude oil has reached close to $ 70 a barrel, due to which the retail price of petrol and diesel is at record level.

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