ASIAN DEVELOPMENT BANK - INTERNATIONAL

News: ADB pares India’s growth hopes to 6.4%

 

What's in the news?

       The Asian Development Bank (ADB) has slashed its growth projection for India for 2023-24 sharply from 7.2% estimated earlier to 6.4%, attributing the cut to the global economic slowdown, tight monetary conditions, and persistently elevated oil prices.

 

Key takeaways:

       The Bank cautioned that the domestic consumption demand is likely to stay healthy, private investment growth is likely to be lower this year due to high lending rates and moderating optimism on business conditions.

       The Outlook noted that the ongoing recovery in China and healthy domestic demand in India will be the main growth support pillars for the entire region through this year and next.

       India’s contribution to developing Asia’s growth is expected to rise to 27% by 2024-25 from an estimated 25% in 2023-24, with China’s impact slipping from 51% this year to 46% by 2024-25.

       South Asia will remain the best-performing sub-region this year, driven by robust growth in India which should register high growth both this year and next year.

 

Asian Development Bank:

       The Asian Development Bank (ADB) was founded in 1966 and is headquartered in Manila (Philippines).

 

Members:

       It has 68 members from Asia and the Pacific.

       Japan owns 15.677% of ADB, followed by the United States (15.567%), China (6.473%), and India (6.473%).

 

Aims of Asian Development Bank:

       The Asian Development Bank (ADB) describes itself as a social development agency dedicated to poverty reduction in Asia and the Pacific through inclusive economic growth, ecologically sustainable growth, and regional integration.

       This is accomplished with an investment of 80% in the public sector.

       This is accomplished through investments in infrastructure, health care services, finance, and public administration systems, as well as other sectors, such as assisting nations in preparing for the effects of climate change or better managing their natural resources.

 

ADB’s Strategy 2030:

       The Asian Development Bank's (ADB) Strategy 2030 charts a course for the bank to respond effectively to the region's evolving demands.

       The Asian Development Bank (ADB) will continue to work to eradicate extreme poverty and develop its vision for a prosperous, inclusive, resilient, and sustainable Asia and the Pacific under Strategy 2030.

 

Significance:

       The Asian Development Bank invests in infrastructure, health, and public administration, assisting countries in mitigating the effects of climate change and managing natural resources.

       The Asian Development Bank (ADB) publishes an annual report that details its operations, budget, and other documents for public consumption.