Addressing the ‘Look East’ Economic Summit 2012, Kolkata, Managing Director General of ADB Rajat M Nag said on Friday, “Despite the fragile economic situation in Euro zone we are confident that the economic growth of India would be higher than 7 percent.”

According to Asian Development Outlook 2011 (ADO 2011), the annual economic publication released in September last year by ADB, the forecast is of growth of 7.9 and 8.3 pct for FY11 and FY12 respectively which was contrasted with their April projections of 8.2 and 8.8 pct for the two years.

Nag clarified that the Euro zone economic exigency has impact on India’s growth scenario that finally downgraded the market.

Earlier this year, the World Bank has trimmed the growth projection of India to 6.8% for this fiscal year.

On Wednesday, the Bank has released its Global Economic Prospects and warned the developing countries to  get prepared to face economic uncertainty and downturn as the world has entered in a serious situation.  

Union Finance Minister Pranab Mukherjee on Thursday said that the growth rate would be around 7.2 percent during the current year.

He said, “Due to current uncertainty in global economy with Euro zone crisis still unresolved and volatility in international commodity prices especially fuel etc, this is a very challenging year for all of us and we have to work together to meet these challenges.”