Despite the fact that fresh trade tensions in Asia and Pacific region are brewing, India has sustained the momentum for South Asia to be the fastest growing economic area as per the new report by Asian Development Bank (ADB).
A supplement to the Asian Development Outlook (ADO) said, "South Asia, meanwhile, continues to be the fastest growing sub-region, led by India, whose economy is on track to meet fiscal year 2018 projected growth of 7.3 per cent and further accelerating to 7.6 per cent in 2019, as measures taken to strengthen the banking system and tax reform boost investment".
The ADO published earlier in April said that GST and other banking reforms will help India retain the fastest growing Asian economy label, with economic growth rising to 7.3% this fiscal and further accelerating to 7.6 per cent in the next financial year.
In a PTI report, ADB Chief Economist Yasuyuki Sawada is quoted as saying "Although rising trade tensions remain a concern for the region, protectionist trade measures implemented so far in 2018 have not significantly dented buoyant trade flows to and from developing Asia". He further added, "Prudent macroeconomic and fiscal policy-making will help economies across the region prepare to respond to external shocks, ensuring that growth in the region remains robust."