ADB sees India's GDP growth at 7% this fiscal

But a return to the very strong performance of recent years hinges on moving the reform agenda forward, especially addressing issues that are constraining investments, says a new ADB report.

Asian Development Bank's flagship annual economic publication -- Asian Development Outlook 2012 -- released today says India's GDP growth should edge up to 7 per cent in 2012-13 and 7.5 per cent in 2013-14.Indian economy recorded 6.9 per cent growth in 2011-12, according to the advance estimates put out by the Central Statistics Office. This is lower than the 8.4 per cent growth recorded in 2010-11.

Average inflation rate

The ADB report expects the average inflation rate to be 7 per cent in 2012-13 and 6.5 per cent the following year. Inflation has eased late in the year after 13 consecutive policy rate hikes by the Reserve Bank of India. The dip in inflation is expected to continue on the expectation of a normal monsoon and more suitable global commodity price.