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ADB Says India’s Growth Rate to be 7.6% 
 

An Asian Development Bank (ADB) report said that India will grow at a robust 7.6% but warned against the 3% fiscal deficit and 6.1% inflation that will force higher interest rates.

ADB says India has two challenges. First, it says that India needs to consolidate its fiscal debt while continuing to spend on infrastructure to support industry and services development, rural productivity, and human development. Second, it said that India needs to develop systems to improve the investment environment so that the cost of doing business will stay low. 

ADB Chief Economist Ifzal Ali said that the Asian economies would take advantage of the growth of India and China and continue their brisk average growth rate of 7% in 2007. Ali further added that growth rate of Asia is heavily influenced by economies of China, India, and South Korea. He estimated that together, these economies corner 66% of regional income.
 

This report is comes close to a report from the UN , which predicted a sustained growth rate of 8% is possible for India. A Pricewaterhouse Coopers (PwC) report said that with 7.6% growth rate, India will lead other E-7 nations of China, Brazil, Russia, Indonesia, Mexico, and Turkey. It also predicted that by 2050, India and China together will be 43% larger that the US economy in terms of Purchasing Power Parity. An International Finance Corporation report  said that developing economies’ market capitalization will grow 5.5% to 5.9% to about USD 5 trillion.