New Delhi, Sep 22: The Asian Development Bank (ADB) has raised its growth forecast for India from 5 pc to 6 pc this fiscal.
The Asian Development Outlook (ADO) 2009 report on Tuesday, Sep 22 said that India will grow at 7 pc in 2010 from its earlier forecast of 6.5 pc.
The report said, "Normal rainfall in fiscal 2010, a pick-up in exports and strengthened investor confidence is now projected to lift GDP growth to seven per cent in fiscal 2010."
According to ADB, "An increase in public spending, a quicker than expected return of capital inflows, stronger industrial production, and signs of improved business confidence will lift economic growth to six per cent in India this year, up from an earlier estimate of 5 pc."
"The Government's strong fiscal stimulus, complementing the Reserve Bank of India's (RBI's) aggressive monetary policy easing, has successfully brought last year's economic slowdown to an end," said ADB Chief Economist Jong-Wha Lee.
"High food prices have a heavy effect on the poor and the Government stands ready to cushion the impact by using its large food grain stocks and by importing essential commodities," report said.