ADB Raises India’s GDP Growth Estimate To 7% For FY 2023: Asian Development Outlook

ADB Raises India’s GDP Growth Estimate to 7% for FY 2023: Asian Development Outlook.

Discover insights from the latest Asian Development Outlook (ADB) report on India’s economy, highlighting a projected GDP growth rate of 7% for the current fiscal year and future growth forecasts.

ADB also considered the strength of the Indian economy and increased the growth rate estimate.

Asian Development Bank (ADB) presented a report on India’s economy. In this report, the bank said that India’s GDP growth could be 7 percent in the current financial year.

Some time ago the bank had estimated India’s GDP growth to be 6.7 percent.

The bank said that GDP will increase due to an improvement in consumer demand along with an increase in demand for investment in the public and private sectors in the country.

However, the bank’s growth estimate for fiscal year 2024-25 is lower than the estimated 7.6 percent for fiscal year 2022-23.

ADB said strong investment drove GDP growth in fiscal 2022-23 as consumption remained subdued.

In December last year, ADB had projected a 6.7 percent expansion of the Indian economy in fiscal year 2024-25.

The April edition of the Asian Development Outlook has been released.

The economy grew strongly in FY 2023 with momentum in the manufacturing and service sectors. This is going beyond expectations.

The main reason for India’s growth spurt is strong investment demand and consumption demand. The downward trend in inflation will continue.

How will GDP growth be in the coming years?

The Asian Development Outlook states that growth will remain strong despite a slowdown in FY 2024 and FY 2025.

For the financial year 2025-26, ADB has estimated India’s growth rate to be 7.2 percent. Exports are likely to remain relatively low this fiscal year but will improve in fiscal year 2025.

To reduce inflation, the Reserve Bank of India (RBI) has decided to keep the repo rate stable at 6.5 percent.

The growth rate is expected to slow down to 7 percent in fiscal year 2024, but it will improve to 7.2 percent in fiscal year 2025.

India needs greater integration into global value chains to boost exports in the medium term to enhance growth in the country.

ADB’s growth forecast for fiscal year 2025 is in line with projections made by the Reserve Bank of India (RBI).

Last week, the RBI said that the gross domestic product (GDP) growth rate in the current financial year is expected to be 7 percent due to expectations of a normal monsoon, reduction in inflationary pressure, and continued momentum in manufacturing and services sectors.