The Asian Development Bank (ADB) raises India FY24 growth forecast to 6.7%, cites industry performance
- IBEF
- December 14, 2023
The Asian Development Bank (ADB) has revised India's economic growth estimate for the Financial Year 2023-24 (FY24) to 6.7%, up from the previous estimate of 6.3% in September. This revision is attributed to India's higher-than-expected gross domestic product (GDP) growth of 7.6% in the second quarter of FY24. The ADB notes that the industrial sector, including manufacturing, mining, construction, and utilities, exhibited double-digit growth. While agriculture is expected to grow slightly slower than anticipated, the robust performance of the industry sector has led to the upward revision. The growth forecast for FY25 remains unchanged at 6.7%, according to ADB.
Increased capital spending by both central and state governments is expected to offset the lower growth in private consumption expenditure and weaker-than-expected exports in FY24. The Asian Development Bank (ADB) has maintained its earlier forecast of 5.5% inflation in India for the same period. Regarding the growth outlook for Developing Asia, excluding China, ADB's report remains optimistic despite global challenges. The region's growth projection for the calendar year 2023 has been revised upward to 4.9% from 4.7%, driven by robust domestic demand. The forecast for FY2024 is maintained at 4.8%. The revision is attributed to upward adjustments in growth projections for both China and India, according to the report.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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