The head of the Asian Development Bank (ADB) Friday said India's economy was poised to grow by seven to eight percent annually over the medium term, bolstered by continued economic reforms.
Tadao Chino said India was expected to sustain the high economic growth it has witnessed since it launched 1991 reforms that eased controls over foreign and private investment.
"In the medium term, seven to eight percent growth is possible in the Indian economy," ADB President Tadao Chino told reporters after meeting Indian Prime Minister Manmohan Singh.
He expressed confidence the economy would be able to withstand the shock of rising oil prices that have sent inflation soaring to nearly three-and-a-half year levels.
"I think the Indian economy can meet the challenge," he added.
Economists forecast the economy will grow by 5.5-6.5 percent in the year ending March 2005, due to a patchy monsoon. India logged growth of 8.2 percent the previous year helped by the best monsoon in years.