The Asian Development Bank (ADB) has announced an increase in India’s gross domestic product (GDP) growth forecast for fiscal year 2024. According to the latest issue of ADB’s Asian Development Outlook (ADO) economic publication for April 2024, the forecast has been raised from 6.7 per cent to 7 per cent. In addition, the forecast for FY 2025 has also been raised to 7.2 per cent.

According to ADB India Country Director Mio Oka, despite global headwinds, India remains one of the fastest growing large economies due to strong domestic demand and supportive policies.

Growth is expected to be fuelled by higher capital spending on infrastructure by the government, rising private corporate investment, as well as improved merchandise exports and higher productivity in industry and agriculture. This is reported by
Emirates News Agency (WAM), a partner of TV BRICS.

The forecast also anticipates higher infrastructure investment, support for housing construction and a boost to private corporate investment due to stable interest rates. Monetary policy is expected to become less restrictive, favouring rapid expansion of bank credit.

Photo:
iStock