GG News Bureau
New Delhi, 12th April. The Asian Development Bank (ADB) has revised India’s Gross Domestic Product (GDP) growth forecast for the current fiscal year upwards to 7 per cent, marking a notable increase from the previous estimate of 6.7 per cent. The ADB attributes this optimistic outlook to the anticipated surge in both public and private sector investments, coupled with an improvement in consumer demand.
The latest edition of the Asian Development Outlook, released by the ADB, highlights India’s continued prominence as a major growth driver in the Asia-Pacific region. For the fiscal year 2025-26, the ADB projects India’s growth to accelerate further to 7.2 per cent, signaling sustained economic momentum.
Despite a slight moderation in growth for the fiscal years 2024 and 2025, the ADB remains bullish on India’s economic prospects, emphasizing the resilience of its growth trajectory. Notably, the projected growth for the current fiscal year is slightly lower than the 7.6 per cent expansion witnessed in the 2022-23 fiscal year, attributed to robust investment activity driving GDP growth during that period, while consumption remained subdued.
The ADB’s outlook aligns closely with the growth projections outlined by the Reserve Bank of India (RBI), which also anticipates a GDP growth rate of 7 per cent for the current fiscal year. Factors such as expectations of a normal monsoon, easing inflationary pressures, and sustained momentum in manufacturing and services sectors are cited as key contributors to India’s growth story.
Looking ahead, the ADB identifies several drivers that are expected to propel India’s growth momentum in the coming years. These include higher capital expenditure on infrastructure development by both central and state governments, increased private corporate investment, robust performance in the service sector, and enhanced consumer confidence.
Acknowledging India’s resilience amidst global headwinds, ADB Country Director for India, Mio Oka, underscores the importance of supportive policies aimed at bolstering infrastructure development and fostering an enabling business environment. The ADB emphasizes the need for India to enhance its integration into global value chains to sustain export growth in the medium term.
While India’s current account deficit is projected to widen moderately to 1.7 per cent of GDP, the ADB remains optimistic about the overall health of the banking sector, citing improved asset quality and declining non-performing assets.
The ADB’s upward revision of India’s growth forecast reflects confidence in the country’s economic resilience and its potential to navigate challenges while continuing on a path of sustained growth and development.
