Asian Development Bank (ADB), India’s economic growth forecast for the current financial year remains unchanged at 6.4 percent. The ADB also projects a growth rate of 6.7 percent for the following financial year. The bank attributes this positive outlook to robust domestic demand, which is expected to support the region’s recovery. Additionally, the ADB anticipates a decline in inflation, with prices approaching pre-pandemic levels, particularly in fuel and food categories. The bank forecasts an inflation rate of 3.6 percent for developing economies in Asia this year, with a further decrease to 3.4 percent in 2024.
Indian economy grew by 7.2 percent in the fiscal year 2022-23, which ended in March 2023. This growth can be attributed to domestic demand and services activity, which have been driving the expansion. Additionally, the recovery in tourism has also been beneficial for many economies, including India. It appears that in April, the Asian Development Bank (ADB) had projected that India’s economic growth would moderate to 6.4 percent in the current financial year. The factors contributing to this projected moderation were cited as tight monetary conditions and elevated oil prices.
