India’s Economic Growth Estimates See an Upward Revision for the Current Financial Year
The Asian Development Bank (ADB) has revised its projections for India’s GDP growth in the ongoing financial year upwards. As per the multilateral funding agency’s latest Asian Development Outlook report released last week, the Indian economy is expected to grow by 7% in 2024-25. This marks an improvement from the 6.7% growth estimate given by the ADB in December last year.
While acknowledging the healthy 7.6% expansion recorded in 2022-23, the report notes that growth momentum will continue albeit at a somewhat slower pace over the next couple of years. Strong investments are seen driving the Indian economy currently with consumption demand also gradually strengthening. Lower inflation levels alongside global trends will support growth, according to the economic analysts at ADB.
Some moderation is anticipated with projections of 7% and 7.2% GDP increases for 2024-25 and 2025-26 respectively. Exports are forecast to see relatively muted growth in the ongoing fiscal amid slowing demand in major developed nations. Both monetary and fiscal policies are aimed at achieving a balance between supporting investments and achieving fiscal consolidation targets.
On the whole, the ADB report reiterates its positive outlook on the Indian economy over the forecast horizon backed by robust investments and improved domestic demand. While external factors could impact exports dynamics in the near-term, the overall growth story remains intact.
