New Delhi, Jul 16 (KNN)  India’s economic growth is likely to be 5.8 per cent this year, lower than the previously forecast 6 per cent, owing to slow progress in pushing through reforms which are needed to ease business bottlenecks, said a report by Asian Development Bank (ADB). 

The latest Asian Development Outlook Supplement released yesterday also pointed out that it was a challenge for Asia to maintain growth momentum.

Significantly, the report trimmed the 2013 growth forecast for the 45 developing member countries of ADB to 6.3 per cent and cut its 2014 forecast to 6.4 per cent. 

In April, ADB had predicted a 6 per cent growth for India while for the region a 6.6 per cent growth this year and 6.7 per cent next year.

Elsewhere in South Asia, Sri Lanka continues to grow strongly while other parts of the region will see softer than anticipated growth, according to the ADB report.

As for South Asia, it is expected to grow by 5.6 per cent in 2013 and 6.2 per cent in the next year.  China, as per the report, is likely to see 7.7 per cent growth this year and 7.5 per cent next year after showing a growth of 7.8 per cent in 2012.

The report has also trimmed forecasts for Central Asia, reflecting the sluggish economic performance of Kazakhstan and Georgia, and for the Pacific where Timor-Leste is seeing a slowdown in government spending.

Meanwhile, Finance Minister P Chidambaram stated that the economy was likely to grow at six per cent during the current fiscal year ending March 2014.

Speaking to the media he highlighted steps taken by the government to boost the economy which included hiked investment in public sector enterprise, investment of Rs 1.15 lakh crore in public sector undertaking during 2012-13; measures to improve exports, coal and gas production, quicker process for environment clearance, resolving of spectrum issues and addition of 20,622 MW of power capacity in 2012-13.   (KNN)