Indian Economy To Grow At 6.4 Per Cent In Current Financial Year: Asian Development Bank

The Asian Development Bank (ADB) has maintained its economic growth forecast for India, predicting a growth rate of 6.4 percent for the current financial year and 6.7 percent for the following year.

The ADB attributes this positive outlook to the strong domestic demand that will continue to support the region's recovery.

According to the latest update of the Asian Development Outlook by the ADB, inflation is expected to decrease and reach pre-pandemic levels as fuel and food prices decline.

The ADB predicts an inflation rate of 3.6 percent for developing economies in Asia this year, and 3.4 percent in 2024.

The Indian economy experienced a growth rate of 7.2 percent in the fiscal year 2022-23, which ended in March 2023.

ADB Chief Economist Albert Park has stated that the recovery of Asia and the Pacific from the pandemic is progressing steadily.

“Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened," Park added.

The Asian Development Bank (ADB) had in April this year projected that India's economic growth would likely moderate to 6.4 percent in the current financial year due to tight monetary conditions and high oil prices.