ADB: India's growth forecast for FY25 maintained at 7%, better monsoon expected to improve agriculture sector
ADB: According to the July version of the Asian Development Outlook (ADO), the Indian economy will grow at a rate of seven percent in the financial year 2024-25 (ending March 31, 2025). It is on track to grow at 7.2 percent in FY 2025-26, as projected by the ADO in April 2024.
The Asian Development Bank has retained its earlier projection of the gross domestic product at seven percent in the current financial year, 2024-25, for India. The bank further informed that the agriculture sector looks quite optimistic, with estimates for the monsoon being better than normal.
The ADB's forecast comes at a time when the International Monetary Fund raised its latest forecast for India's GDP growth to seven percent, compared with 6.8 percent in April.
The Reserve Bank of India last month raised its growth forecast from seven to 7.2 percent.
According to the July version of the Asian Development Outlook (ADO), the Indian economy will grow at a rate of seven percent in the financial year 2024-25 (ending March 31, 2025). It is on track to grow at a rate of 7.2 percent in the financial year 2025-26, as projected in the ADO in April 2024.
The Indian economy recorded a growth rate of 8.2 percent in the financial year ending March 31, 2024, as against seven percent in the previous financial year 2022-23.
The report said, "After slow growth in FY 2022-23, the agriculture sector is expected to improve in view of above-normal monsoon estimates. This is despite the slow progress of the monsoon in June. Reforms in agriculture will be crucial to sustaining growth momentum in rural areas."
Regarding the growth forecast for developing Asia, the ADO said it has been revised upwards to 5 per cent for 2024 and maintained at 4.9 per cent for 2025.
