New Delhi: The Asian Development Bank (ADB) raised India’s GDP growth forecast to 7 percent for 2024-25. It expects consumer demand to improve along with public and private sector investment.
Earlier in December, ADB had estimated India’s economic growth rate to be 6.7 percent for the 2024-25 financial year. ADB also expects India’s inflation rate to decline going forward.
“The Indian economy grew strongly in manufacturing and services. It will continue to grow rapidly. Growth will be driven mainly by strong investment and recovery in consumer demand. Inflation will continue to trend downward,” it said. After this, ADB has estimated India’s growth rate to be 7.2 percent for the financial year 2025-26.
The report said India needs integration into global value chains to boost exports in the medium term. The increase in ADB’s growth forecast is in line with those of the IMF and the World Bank.
India’s foreign exchange reserves reached a historic high of $645.58 billion in the week ended March 29, enough to meet 11 months of imports. The inflation rate has declined to around 5 percent and is expected to decline further, paving the way for further stable economic growth.
