In a statement on Wednesday, the Asian Development Bank (ADB) maintained its prediction for India’s economic growth at 6.4% for the current fiscal year and 6.7% for the following, noting that strong domestic demand will continue to support the region’s recovery.
In-depth details on the Asian Development Bank maintains its 6.4% growth projection for India
The ADB added that as gasoline and food costs reduce, inflation is anticipated to continue to decline and eventually reach pre-pandemic levels. For developing economies in Asia, it predicted inflation of 3.6% this year and 3.4% in 2024.
In the fiscal year 2022–23 that concluded in March 2023, the Indian economy expanded by 7.2%.
“Asia and the Pacific continues to recover from the pandemic at a steady pace,” said Albert Park, chief economist for the Asian Development Bank.
Growth is being driven by domestic demand and services activity, and many economies are also gaining from a robust tourism revival. However, industrial production and exports continue to be subpar, and the outlook for global demand and growth in 2019 has gotten worse, according to Park.
Due to tight monetary circumstances and high oil prices, the ADB had predicted in April that India’s economic growth would decelerate to 6.4% in the current fiscal year.
