New Delhi: The Asian Development Bank (ADB) has increased India’s growth forecast for this year to 7%, up from the earlier prediction of 6.7%. This adjustment is credited to the country’s growing investment and better consumption demand. ADB also anticipates a growth rate of 7.2% for the next year.
The ADB has forecasted the nation’s inflation to stay at approximately 4.6% in 2024. Yet, it stressed the importance of stable prices and financial markets for both consumer and business confidence. “The outlook could thus be affected by negative global shocks, such as a supply shock in crude oil markets that spikes energy costs and raises global inflation, which could lead central banks to tighten financial conditions globally and in India,” the agency said.
The agency recognised challenges like weather impacts on demand and inflation, especially in agriculture. “Besides boosting output, FDI inflow would improve productivity. Better than-expected global growth could boost exports and thus growth,” the agency added.
