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The Asian Development Bank (ADB) on Wednesday maintained India’s economic growth forecast at 6.4 percent for the current fiscal year and 6.7 percent for next year, saying strong domestic demand will continue to support the region’s recovery.
In an update to its Asian Development Outlook, the Asian Development Bank said inflation is expected to continue declining, approaching pre-pandemic levels as fuel and food prices fall. Inflation is expected to be 3.6 percent this year for developing economies in Asia, and 3.4 percent in 2024.
The Indian economy grew by 7.2 percent in the 2022-23 fiscal year ending March 2023.
“Asia and the Pacific continue to recover from the epidemic at a steady pace,” said Albert Park, chief economist at the Asian Development Bank.
Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. Park added that industrial activity and exports remain weak, and the outlook for global growth and demand in the coming year has worsened.
In April, the Asian Development Bank had forecast that India’s economic growth was expected to ease to 6.4 percent in the current fiscal year due to tightening monetary conditions and higher oil prices.
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