ADB Retains India's Growth Forecast At 6.4% For Current Fiscal On Robust Domestic Demand

The Asian Development Bank (ADB) on Wednesday, July 19, 2023, retained India's economic growth forecast at 6.4% for the current financial year and 6.7% for the next, saying strong domestic demand will continue to support the region's recovery, according to a PTI report.

In an update to its Asian Development Outlook, the ADB said inflation is expected to continue to decline, approaching pre-pandemic levels as fuel and food prices fall. It forecast 3.6% inflation this year for developing economies in Asia, and 3.4 per cent in 2024.

The Indian economy witnessed growth of 7.2% in the 2022-23 fiscal ended March 2023.

"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, Mr. Park added.

Earlier this year in April, the ADB had projected that India's economic growth is expected to moderate to 6.4% in the current financial year due to tight monetary conditions and higher oil prices, added the PTI report.