When it comes to India’s FY25 growth projection, ADB‘s estimates are in line with RBI’s projections. The Asian Development Bank has revised India’s GDP growth forecast for the current fiscal to 7 per cent from 6.7 percent earlier. According to them robust private and public sector investment and consumer demand is driving this upward revision.
The April edition of the Asian Development Outlook which was released on Thursday highlighted that inflation may continue its downward movement in line with global trends.
Last week, RBI in its Monetary Policy Meet had stated that GDP growth in the current fiscal is estimated at 7 per cent. The expectations were drawn on the basis of sustained stimulus in services and manufacturing sectors, normal monsoon, and lessening inflationary pressures.
According to ADB, exports are expected to be muted in this fiscal because development in major advanced economies will decline but will get better in FY2025.
India requires greater accumulation into global chains in order to boost exports in the medium term, ADB stated. ‘’Monetary policy is projected to continue to exist in support of growth as inflation becomes less, on the other hand fiscal policy is directed towards consolidation but holds on support for capital investment. Growth is forecasted to become steady to seven per cent this fiscal and will rise to 7.2 per cent next year,’’ the ADB added, as reported by PTI.
(Inputs by PTI)