Asian Development Bank Ups India’s Growth Forecast to 7% in Fiscal Outlook

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In a positive economic outlook, the Asian Development Bank (ADB) has revised India’s GDP growth forecast for the current fiscal year to 7%, up from the previous estimate of 6.7%. This upward revision reflects ADB’s confidence in India’s robust growth trajectory, driven by investments and improved consumer demand.

The ADB’s April edition of the Asian Development Outlook emphasizes India’s role as a major growth engine in the Asia-Pacific region. The forecast for the fiscal year 2025-26 is equally optimistic, with ADB projecting India’s growth at 7.2%, indicating sustained momentum in economic expansion.

Despite expectations of moderation in growth for fiscal years 2024 and 2025, ADB remains bullish on India’s economic prospects. Strong investment, both public and private, has been a key driver of GDP growth, compensating for subdued consumption trends.

ADB’s growth projections align closely with those of the Reserve Bank of India (RBI), which also forecasts a 7% GDP growth for the current fiscal year. Factors contributing to this positive outlook include expectations of a normal monsoon, controlled inflationary pressures, and continued momentum in key sectors like manufacturing and services.

The ADB acknowledges India’s efforts in fiscal consolidation, infrastructure development, and creating an enabling business environment. These measures, coupled with stable interest rates and supportive monetary policies, are expected to bolster private investment and enhance manufacturing competitiveness, leading to increased exports and sustained growth.

While highlighting the positive trajectory, ADB also cautions against potential risks such as supply chain disruptions, global financial uncertainties, extreme weather events, and property market vulnerabilities in certain regions. Vigilance and proactive policy measures are recommended to mitigate these risks and sustain the momentum of economic growth.

Overall, ADB’s revised growth forecast underscores India’s resilience and potential as a key player in the region’s economic landscape. The focus on sustainable growth, inclusive development, and resilient policies remains paramount as India navigates through dynamic global challenges.

Sources By Agencies