"Eight per cent growth is sustainable in the coming five years or more. If infrastructure is improved and economic reforms are continued, the rate of growth can be accelerated to 9-10 per cent," Haruhiko Kuroda, president, ADB said.
Considering India's high growth prospects and greater funding requirement, ADB is planning to raise $300-400 million from the domestic bond market and step up lending to the country.
Kuroda said ADB's assistance to India will be about $2.25 billion in 2005-06, which will go up to $2.45 billion next fiscal and further to $2.65 billion in 2007-08. Stressing on infrastructure sector, he said ADB will focus on three major sectors -- transport, power and water.
Though high global oil prices continue to pose a major threat to most oil importing countries, Kuroda said the prices will decline gradually in the short run (2-3 years) but in the long run they will rise.
The price of global crude oil will not come back to the previous level of $20-25 a barrel, he added.
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