New Delhi: India is on track to achieve projected 5.5 percent economic growth rate in 2014-15 as declining oil prices present a golden opportunity for many beneficial reforms, Asian Development Bank said on Wednesday.
"India is on track to reach the growth forecast of 5.5 percent in FY2014 (ending 31 March 2015) after expanding by 5.7 percent in the first quarter and 5.3 percent in the second quarter," the Manila-based agency said.
"The growth outlook in developing Asia remains steady despite a slowed momentum in the second half of 2014, but declinng oil prices present a golden opportunity for many beneficial reforms in Asia," it said.
Falling global oil prices present a golden opportunity for importers like Indonesia and India to reform their costly fuel subsidy programmes, ADB Chief Economist Shang-Jin Wei said.
ADB said Indian government has demonstrated willingness to tackle contentious reforms by eliminating diesel subsidies, but it must extend its efforts to reach the forecast of 6.3 percent GDP growth in FY2015.
However, ADB lowered the GDP growth projection for the region to 6.1 percent in 2014, from 6.2 percent earlier, and to 6.2 percent in 2015, from 6.4 percent earlier.
Cutting the GDP forecast for China to 7.4 percent in 2014 from 7.5 percent earlier, and 7.2 percent in 2015 from 7.4 percent, ADB said the growth moderation in PAC is seen extending.
"The growth moderation in China is seen extending into the fourth quarter due to a continued real estate market correction and its spillover to the related sectors like construction," ADB said.
