Asian Development Bank Current Affairs - 2019
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The Asian Development Bank (ADB) in the recent Asian Development Outlook report has made the following observations in the forecast for the financial year 2019-20:
- India’s growth forecast was lowered for 2019-20 to 7.2% from 7.6% estimated earlier due to moderation in global demand and likely shortfall in revenue on the domestic front.
- Despite the downgrade in growth rate, India will remain the fastest growing economy, as China is projected to grow at 6.3% in 2019.
- ADB has cut the growth estimate to 7% from 7.3% projected in December last year for the just-concluded fiscal (2018-19).
- Growth is expected to rebound to 7.2% in 2019-20 and 7.3% in 2020-21 as policy rates are cut and farmers receive income support, bolstering domestic demand.
- This growth turn around will reverse two years of the declining trend as reforms to improve the business and investment climate take effect.
- The growth forecast for India has some downside risks such as moderation in global demand as financial conditions tighten, uncertainty arising out of global trade tensions, and the weak economic outlook in industrial countries.
- The growth could suffer if tax revenue falls short or any disruption affects the ongoing resolution of the twin balance sheet problem of bank and corporate balance sheets.
Since India will remain one of the fastest-growing major economy in the world, it has a golden opportunity to cement recent economic gains by becoming more integrated in global value chains, and the young workforce, improving business climate, renewed focus on export expansion.
The Government and the Asian Development Bank (ADB) have signed a loan agreement of $926 Million to operationalise two lines for the Mumbai Metro Rail System. This is the single largest Infrastructure Project Loan in ADB history approved by the Asian Development Board.
About the Project
- The loan agreement will fund the lines 2A (Dahisar to D.N. Nagar), 2B (D.N. Nagar-Bandra-Mandale), and 7 (Dahisar [East] to Andheri [East]), totalling about 58 kilometres (km).
- The agreement also involves funding for 63 six-car trains, signalling and safety systems, and establishment of a new dedicated metro operations organization to manage the entire metro network in
- The project is expected to be completed by the end of 2022. Once completed an estimated 2 million passengers per day will commute on these the two new lines. This will subsequently reduce emissions from vehicles, with carbon dioxide emissions expected to fall by about 166,000 tons a year.
Asian Development Bank
Asian Development Bank (ADB) established on 19 December 1966 was conceived a financial institution which was Asian in character to foster economic growth and cooperation in one of the poorest regions in the world.
The ADB based at Manila of Philippines assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development. ADB partners with member governments, independent specialists and other financial institutions to deliver projects in developing member countries to create economic and development impact.
From 31 members during its inception in 1966, ADB has grown to encompass 67 members of which 48 hail from within Asia and Pacific and 19 developed countries are from outside.