Economy - Reports
India's growth prospects remain robust, says ADB As on : 25-Sep-24  10:13

In its Asian Development Outlook (ADO) update of September, the ADB said India's GDP growth is expected at 7.0% in fiscal year 2024 (FY2024, ending 31 March 2025) and 7.2% in FY2025, both as forecast in ADO April 2024. While GDP growth slowed to 6.7% year on year in the first quarter of FY2024, it is expected to accelerate in the coming quarters with improvement in agriculture and a largely robust outlook for industry and services, the report stated. Exports in FY2024 will be higher than earlier projected, led by larger services exports, particularly in IT and professional services. Growth in merchandise exports will be relatively muted in FY2024 and FY2025, though some segments, notably electronics, may experience faster growth, ADB noted. Private consumption is expected to improve, driven by rural consumption fueled by stronger agriculture and by already robust urban consumption. The outlook for private investment is upbeat, but growth in public capital expenditure, heretofore high, will moderate in FY2025. Efforts toward fiscal consolidation are expected to drive down the fiscal deficit to a level last seen before COVID-19, reflecting robust revenue collection and restrained current expenditure. A recent policy announcement offering workers and firms employment-linked incentives could boost labor demand and bolster job creation starting in FY2025, the Asian Development Bank (ADB) said on Wednesday.

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