ADB Maintains India’s Growth Rate Projection at 7.0% for FY 2024
The Asian Development Bank (ADB) has upheld its projected growth rate for India at 7.0% for the current financial year ending March 31, 2025, with an expected improvement to 7.2% in 2025-26, as stated in ADB’s recent Asian Development Outlook July report.
India’s economy is anticipated to remain robust over the next two years, despite a forecasted slowdown in the country’s Gross Domestic Product (GDP) from 7.6% recorded in 2023-24.
Although India’s economic growth decelerated to 7.8% in fiscal Q1, it remains the fastest in the region. Asian Development Bank noted that the stronger-than-expected fiscal position of the central government could provide an additional boost.
India’s industrial sector is projected to experience robust growth, driven by manufacturing and strong demand for construction, particularly in housing. The agriculture sector is expected to rebound in FY2024 with predictions of a strong monsoon, following muted growth in FY2023.
However, ADB stated that export growth will continue to be led by services, while merchandise exports are expected to show relatively weaker growth.
