The Asian Development Bank (ADB) forecasts that GDP growth in India-the subregion's largest economy-is revised down to 6.7% in 2017 and 7.3% in 2018. Although the strong manufacturing expansion helped the economy reverse 5 consecutive quarters of deceleration in the second quarter of fiscal year 2017, the recovery is more subdued than assumed earlier due to rising crude oil prices, soft private investment growth, and weather-related risks to agriculture.

ADB projections that economic expansion in developing Asia will accelerate to 6% in 2017 as stronger than expected exports and domestic consumption fuel growth. Excluding Asia's newly industrialized economies, growth is now expected at 6.5% this year, according to a new ADB report.

In a supplement to its Asian Development Outlook Update 2017 report, ADB upgrades its 2017 growth domestic product (GDP) outlook in the region by 0.1 percentage points compared to its September 2017 forecast, while its 2018 forecast remains unchanged at 5.8%. An unexpectedly strong expansion in Central, East, and Southeast Asia has offset a downward adjustment in South Asia.

''Developing Asia's growth momentum, supported by recovering exports, demonstrates that openness to trade remains an essential component of inclusive economic development,'' said Yasuyuki Sawada, ADB's Chief Economist. ''Countries can further take advantage of the global recovery by investing in human capital and physical infrastructure that will help sustain growth over the long-term.''