Asian Development Bank retains India's growth forecast at 6.4 pc for current fiscal

The Asian Development Bank (ADB) has retained its economic growth forecast for India, projecting a growth rate of 6.4 per cent for the current financial year and 6.7 per cent for the following year. The ADB cited the strength of domestic demand as a key factor supporting the region’s ongoing recovery. As part of the Asian Development Outlook update, the ADB also anticipated a decline in inflation, with prices approaching pre-pandemic levels, particularly for fuel and food. The inflation forecast for developing economies in Asia stands at 3.6 per cent for the current year and is expected to decrease to 3.4 per cent in 2024. The Indian economy grew 7.2 per cent in the 2022-23 fiscal ended March 2023. “Asia and the Pacific continues to recover from the pandemic at a steady pace,” ADB Chief Economist Albert Park said. “Domestic demand and services activity is 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. In April, the ADB had projected that India’s economic growth is expected to moderate to 6.4 per cent in the current financial year due to tight monetary conditions and elevated oil prices. With inputs from PTI.