Fresh Batches for IAS / PCS / HAS / HCS starting from 27th June & 4th July | Course Delivery Options: Online & Offline. We are offering following optionals: Public Administration, Sociology, History,PSIR, Psychology. For registration call at 8699010909
Demo Class

Asian Development Outlook (ADO), 2024

By /

Context

  • The Asian Development Bank (ADB) has prepared the Asian Development Outlook (ADO), 2024.

Key Findings

  • Asia’s economy expanded by 5.0% in 2023 from 4.3% in 2022, but growth was uneven across subregions. Growth will remain at 4.9% in 2024 and 2025.
  • Export growth for high-income technology exporters turned positive in the last quarter of 2023, rising by 5.4% as demand for semiconductors and electronics began to gain traction.
  • International tourism continued to recover, reaching 73% of pre-pandemic levels by the end of 2023.
  • Asia’s inflation is projected to fall from 3.3% in 2023 to 3.2% in 2024 and 3.0% in 2025.
  • Issues and Concerns
  • There are several risks to developing Asia’s growth outlook, including the current conflicts in the Middle East and geopolitical tensions.
  • Uncertainty about US interest rates, intensified weakening of the property sector in the People’s Republic of China, and the effects of extreme weather also weigh on the region’s outlook.

Indian Scenario

  • ADB revised its GDP growth forecast for India, raising it to 7% for the fiscal year 2023-24 from its previous projection of 6.7%.
  • India’s ‘persistent’ food inflation is expected to drop to 5.7% as farm output returns to trend this year.
  • As India accounts for 80% of South Asia’s GDP, it is still the fastest-growing sub-region with improving domestic demand as prices moderate in most economies.
  • India’s growth will be driven by public and private sector investment demand and by gradual improvement in consumer demand as the rural economy improves
  • Foreign direct investment inflow will likely remain muted in the near term due to tight global financial conditions but will pick up in 2025-26 with higher industry and infrastructure investment.

Suggestions for Boosting Trade

  • India’s growth strategy is predicated on substantial export growth. It can be achieved through integration into global value chains (GVCs).
  • A target of $2 trillion in exports of goods and services has been set by the government to be achieved by 2030.
  • Participation in GVCs encourages FDI, which can generate spillover benefits in terms of productivity improvement and technology upgrades.
  • India has been a global leader in service trade. Its share of global service exports increased from 3.5% in FY2017 to 4.6% in FY2022. However, goods exports have a larger impact on employment and growth than do service exports.
  • A simplified tariff policy is needed along with continued efforts to improve trade and logistics infrastructure
Asian Development Bank

– ADB is a regional development bank established in 1966 for Social and Economic Development. It has 68 members.

– It is a multilateral development bank, which seeks to help its developing member countries to reduce poverty and improve their people’s quality of life through inclusive economic growth, environmentally sustainable growth, and regional integration.

– Headquarters: Manila, Philippines.