Home / Knowledge / News / Textiles / South Asian economic outlook remains strong
South Asian economic outlook remains strong
Dec '15
The economic outlook for South Asia remains strong, according to the Asian Development Bank's Asian Development Outlook 2015 Update. The region's growth is on track to meet Update projections of 6.9 per cent in 2015 and 7.3 per cent in 2016.

India is on track to reach the Update forecast of 7.4 per cent growth in FY2015 (ending 31 March 2016), as growth picked up to 7.4 per cent in the second quarter from 7 per cent in the first. Industrial production accelerated to 4.6 per cent in the second quarter from 3.3 per cent in the first. Growth in public capital expenditure also continued to be robust at about 30 per cent in the second quarter. Leading indicators such as sales of commercial vehicles, car sales, and air passenger traffic were also gathering momentum.

However, continued weakness in external demand will likely cause exports to contract this year. India's economy faces further downside risks from sluggish private investment and rural demand weakened by slow wage growth and muted increases in support prices for agricultural products.

According to the Update, continued strong economic expansion in India balances a slowdown in Bhutan and the Maldives in 2015, and in Nepal in 2016. The downward revision for Bhutan reflects hydroelectric sales below expectations and for the Maldives a weaker tourism outlook.

In Pakistan, provisional GDP growth in FY2015 (ended 30 June 2015) is as forecast in the Update. The economic slowdown forecast for Nepal in 2016 reflects lower expectations for the summer crop harvest following unfavorable weather and unforeseen delays in earthquake-related reconstruction.

Growth projections for Bangladesh and Sri Lanka remain in line with those in the Update. Strong domestic demand on the back of an expected pickup in investment and improved garment exports will continue to support growth in Bangladesh, while the alleviation of political uncertainty in Sri Lanka is seen to revive private investment. (SH)

Fibre2Fashion News Desk - India

Must ReadView All

Apparel/Garments | On 21st Oct 2016

China’s garment retail sales grow 7.2% in Jan-Sept ’16

Retail sales of garments, footwear, hats and knitwear of Chinese...

Mike Preston, executive director of the Arkansas Economic Development Commission (AEDC), signing MoU with Tang from Suzhou Tianyuan Garments company. Courtesy: Government of Arkansas

Apparel/Garments | On 21st Oct 2016

Suzhou Tianyuan to open $20 mn garment factory in US

Suzhou Tianyuan Garments company, a Chinese manufacturer of casual...

Textiles | On 21st Oct 2016

Pakistan’s textile exports fall 5.96% y-o-y in Q1 FY17

The value of textile and garment exports made by Pakistan decreased...

Interviews View All

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search