South Asian Business news and information

7.6% is not bad but I am sure that most Indians would prefer a growth rate of 8% or higher. ADB report clearly states, "The annual average growth rate over 2006–2010 is unlikely to exceed 8–8.5%." However, Indian GDP growth rate was 8.1% in FY2005. If it could happen last year then why not this time? After all, every day we see new reports of global companies outsourcing their jobs to India. ADB report has mentioned two key challenges for the Indian economy. On the one hand, India must try to improve its infrastructure and focus on improving the income of rural people who form the majority of Indian population. On the other hand, India must try its best to lower the cost of doing business.

 Rising price of a while in the international market seems to be a major obstacle for Indian growth. To sustain the economic growth,  India has to generate massive amount of electricity and it needs energy. ADB has warned that if the Indian government raise the salary of its employees too much in near future, then its economic progress may suffer a setback.

 Indian economy is gradually having more weight on the Asian economy as a whole and one indication of this growing influence is the fact that ADB has dedicated 11 pages for its discussion on Indian economy.

 You can read ADB's report on India in the following link.  

 The Economic Times