India to remain fastest growing major economy

India will remain the fastest growing major economy in the world with growth expected to be over 7.4% in 2017 and 7.6% in 2018, while expansion in China is likely to slow in the next two years, the Asian Development Bank said in its latest forecast.

In its new Asia Development Outlook report, the Manila-based ADB said the deceleration to 7.1% registered last year was due to slower investment growth and the impact of demonetisation that the government unveiled in November. But it said the impact of scrapping some high value notes has been largely temporary.

China's growth continues to moderate as the government implements measures to transition the economy to a more consumption-driven model, ADB said. Overall output is expected to slow to 6.5% in 2017 and 6.2% in 2018, down from 2016's 6.7%.

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