"With the Parliamentary elections over, India is expected to pursue long-delayed reform. India’s growth forecast is maintained at 5.5 percent in fiscal year 2014-15 but upgraded to 6.3 percent in FY 2015-16 as expected reform bears fruit," it said in a release.

Earlier, ADB had projected 6 percent growth for India in the financial year.

Pinning hopes on improved outlook for the largest economy (India) in South Asia, it said expansion in the sub-region is expected to reach 5.4 percent in 2014 and pick up to 6.1 percent in 2015.

ADB said developing Asia remains on track toward steady growth in 2014 despite slower-than-expected growth in the United States in the first quarter.

"Developing Asia as a region continues to perform well. The pace of the growth moderation in the People’s Republic of China is in line with our expectations while the stage is set for India to pursue reform that could unlock its growth potential," said ADB Deputy Chief Economist Juzhong Zhuang.

It said growth in China is moderating in line with earlier expectations and should achieve the forecast of 7.5 percent in 2014 and 7.4 percent in 2015.

"East Asia as a whole is similarly paced to meet growth projections of 6.7 percent in both 2014 and 2015."

In Southeast Asia, growth softened in the first half of 2014 largely because of country-specific factors in Indonesia, Thailand, and Vietnam.

"The outlook for the sub-region’s five largest economies is revised down to 4.8 percent in 2014, dragging the sub-regional forecast to 4.7 percent, but should rebound in 2015 to 5.6 percent, or 5.4 percent across Southeast Asia," it said.

On price situation, ADB said declining food prices and relatively stable oil prices are keeping developing Asia’s inflation in check at 3.5 percent in 2014 and 3.7 percent in 2015.


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