The Asian Development Bank (ADB) has lowered India's growth forecast to 5.8 per cent for 2013-14 from 6 per cent level projected in April this year.
This has largely been prompted by the slow progress in pushing through the reforms needed to ease the business bottlenecks.
However, the GDP growth forecast for 2014-15 has been maintained at 6.5 per cent, the Manila headquartered development bank said in its latest Asian Development Outlook supplement released today.
Continued tepid demand from major industrial economies coupled with slower growth in the People’s Republic of China (PRC) are weighing on the outlook for developing Asia, according to the ADB report.
ADB has now trimmed the 2013 growth forecast for the 45 developing member countries of the development bank to 6.3 per cent and cut its 2014 forecast to 6.4 per cent.
In April, it had predicted the region to grow 6.6 per cent this year and 6.7 per cent next year.
Slower growth in PRC
Slower growth in the PRC has subdued the outlook for the entire East Asia region, as well as, to a lesser extent, for Southeast Asia, where the Philippines and other large ASEAN countries are otherwise seeing solid growth.
Elsewhere in South Asia, Sri Lanka continues to grow strongly while other parts of the region will see softer than anticipated growth.