Lauding India's economic reform process, the Asian Development Bank expected the country's economy to grow by 7-8 per cent in the medium term and said it would step up its loan exposure to $2 billion annually.
"In the medium term, 7-8 per cent growth is possible in the Indian economy," ADB President Tadao Chino told reporters after his meeting with Prime Minister Manmohan Singh on Friday.
Unlike in the past, Indian economy was growing rapidly due to the reform process started in 1991 and expectations are that it would sustain the high growth in the future, he said.
"Now India is growing at a rapid rate and has sustained high growth," he said.
Asked if the unprecedented surge in global oil prices would affect the country's growth, the ADB President said high level of prices would impact economic growth but given the strong reform effort and high growth, "I think Indian economy can meet the challenge."
He also said ADB would raise its exposure to India from the current level of $1.5 billion to $2 billion annually.
Describing Manmohan Singh as his 'old friend and architect of India's economic reforms', he said Singh's efforts brought about the sustained high growth and poverty reduction in India.
Tadao Chino said ADB would strengthen its collaboration and cooperation with India which was evident from the bank's decision to virtually double its exposure to the country annually in the recent years.
The ADB president identified agriculture, rural development, water supply, irrigation, power and infrastructure development as areas which required greater government attention for their reform.
Sustained high economic growth and poverty reduction could be carried forward only through a 'lot of work' in reforming these sectors, he said.
