In what could be a morale booster amid dithering economic conditions, the Asian Development Bank (ADB) has revised India's GDP upwards by 0.3 percent to 6.3 percent in 2015. ADB though maintained the 5.5 percent growth forecast for 2014, but while increasing forecast for 2015 said that the economy shows a new promise of turnaround after the election brought a stable government in May. ADB also said that improving prospects in India will buoy the 2015 regional growth outlook somewhat, even as the growth path of China moderates.
Adding further in its 'Outlook 2014 Update', the Manila based bank said that after winning a decisive parliamentary election victory, the new government is better positioned than the old to pursue the reform necessary to unlock the economy's growth potential. The new single-party government in India with the strongest mandate in three decades has outlined wide-ranging reforms, which will gradually overcome the difficult structural problems that have beset the economy and caused two years of slow growth and stagnant investment.
In its new report, the Asian Development Bank said that developing Asia will remain the fastest-growing region in the world as China takes steps to stabilize investments and sustain economic expansion while keeping credit growth in check. However, the ADB projects major industrial economies to grow this year by 1.5%, down from the April forecast 1.9%.