The Asian Development Bank (ADB) has now made an estimate on the country’s economy. ADB has maintained India’s growth forecast at seven percent for the current financial year 2024-25. ADB said that the economy is expected to grow in the coming quarters due to better agricultural production and high government spending.
In its Asian Development Outlook (ADO) for September, ADB said exports in the current fiscal year 2024-25 will be higher than previously estimated, thanks to an increase in services exports. However, merchandise export growth will be relatively slow in the next fiscal year 2025-26.
what did adb say
ADB said- GDP growth is expected to be 7 percent in the financial year 2024-25 (year ending March 31, 2025) and 7.2 percent in the financial year 2025-26. Both estimates are the same as of April 2024. Also, India’s growth prospects remain strong. The Indian economy grew at the rate of 8.2 percent in the last financial year 2023-24. Let us tell you that the Reserve Bank has projected a growth rate of 7.2 percent in the current financial year.
“Gross domestic product (GDP) growth slowed to 6.7 per cent in the first quarter (April-June) of the current fiscal year, but is expected to pick up in the coming quarters on the back of improvement in the agriculture sector and a largely strong outlook for industry and services,” it said.
Poised for steady growth
ADB India Director Mio Oka said – India’s economy has shown remarkable resilience amid global geopolitical challenges and is poised for stable growth. He said that agricultural reforms will increase rural expenditure, which is in line with the effects of strong performance of industry and service sectors. The report said, above average monsoon in most parts of the country will lead to strong growth in the agricultural sector, which will boost the rural economy in FY 2024-25.
The report also expects private consumption to improve. This will be mainly due to strong agriculture-driven rural demand and already strong urban demand. The outlook for private investment is positive, but the growth in public capital expenditure, which has been high so far, will slow down in the next financial year.
“The recently announced policy offering employment-linked incentives to workers and companies may boost labour demand and create more job opportunities in the next fiscal year,” it said.
CAD expected to remain low
Industry and services are expected to continue to perform well. The current account deficit (CAD) will remain low due to strong service exports and remittances sent by Indians living abroad. Inflation is expected to be higher than previously estimated in the current financial year due to increased food prices, although it is expected to ease in the next financial year.
