Asian Development Outlook (ADO) 2024 by ADB

GS-2 Mains : IR

Short Notes or Revision Notes 

Question : Discuss the role and objectives of the Asian Development Bank (ADB) as outlined in the ADO 2024 report

Key Findings

• Asia’s economic growth:
  • 0% in 2023 (up from 4.3% in 2022).
  • Projected to remain at 4.9% in 2024 and 2025.
• Improved performance in specific areas:
  • High-income tech exporters saw positive export growth (5.4%) in late 2023.
  • International tourism reached 73% of pre-pandemic levels by 2023’s end.
• Projected moderation in inflation:
  • From 3.3% in 2023 to 3.0% in 2025.

Issues and Concerns

• Risks to growth outlook:
  • Geopolitical tensions.
  • Uncertain US interest rates.
  • China’s property sector weakness.
  • Extreme weather events.

India’s Scenario

• Upwardly revised GDP growth forecast (ADB): 7% for FY 2023-24 (from 6.7%).
• Expected decline in food inflation (India) to 5.7% in 2024.
• India as the growth engine of South Asia:
  • 80% share of regional GDP.
  • Buoyed by domestic demand and improving rural conditions.
• Growth drivers in India:
  • Public & private investment.
  • Gradual rise in consumer demand.
• Foreign direct investment (India):
  • Likely muted in near term.
  • Expected to pick up in 2025-26.

Boosting India’s Trade

• Integration into Global Value Chains (GVCs) for export growth.
• Government’s target: $2 trillion in exports by 2030 (goods & services).
• Benefits of GVC participation:
  • Attract FDI.
  • Improve productivity and technology.
• India’s strength: Service exports (4.6% global share in FY2022).
• Need for a simplified tariff policy and improved trade/logistics infrastructure.

Asian Development Bank (ADB)

• Established in 1966 for social and economic development in Asia.
• 68 members.
• Focuses on inclusive economic growth, environmental sustainability, and regional integration.
• Headquarters: Manila, Philippines.