Takehiko Nakao said last week – on the last of a three-day visit to the country – his bank’s next five-year strategy for the country was to improve the economic growth of less developed states and support the growth of the East Coast Economic Corridor.

The corridor is India’s first economic corridor, whereby infrastructure is linked together along the coast to stimulate economic development.

Nakao pledged up to $5bn from 2018 to 2022 to tackle critical infrastructure and capacity deficits for less developed states such as Uttar Pradesh, Bihar, Jharkhand, Odisha, and Chhattisgarh.

While on the trip, the ADB president praised India’s reforms in the last three years aimed at improving the country’s investment climate and incentivising economic activities .  

He also applauded the government for its efforts to implement the Uniform and Goods and Service Tax [from 1 July], to create a single national market and spur economic growth by removing tax distortions.

“Several reform measures introduced by the government for rationalising tax structure, boosting competitiveness, and easing foreign direct investment norms in crucial sectors like infrastructure will contribute to its objective of achieving high and inclusive economic growth,” Nakao said.

“Further reforms both at central and state levels for improving efficiency in the land and labour markets and strengthening the banking sector will boost growth.”

The ADB expects India to grow by 7.4% in the current financial year ending 31 March 2018, and 7.6% in the next financial year.