ADB keeps India's GDP growth projection for FY25 unchanged at 7%

Projection must be weighed against 'downside risks from weather events and geopolitical shocks', it says

23132
23132
Abha Jaiswal New Delhi
2 min read Last Updated : Jul 17 2024 | 11:36 AM IST
The Asian Development Bank (ADB) on Wednesday kept India’s gross domestic product (GDP) growth projection for FY25 unchanged at 7 per cent, citing robust expansion in the industrial sector and strong demand in construction led by housing.
“The stronger-than-expected fiscal position of the central government could provide a further boost to growth. However, this must be weighed against downside risks arising from weather events and geopolitical shocks,” said ADB.

ADB’s July outlook said India’s agriculture sector, which is expected to rebound with forecasts for an above-normal monsoon, will be important to sustain economic growth in rural areas. It said that investment demand led by public investment remains strong.
“Bank credit is fueling robust housing demand and improving private investment demand. However, export growth will continue to be led by services, with merchandise exports showing relatively weaker growth,” said ADB.
It said that the forward-looking services purchasing managers' index is well above its long-term average.
The International Monetary Fund on Tuesday raised India’s GDP growth projection for FY25 by 20 basis points to 7 per cent in its update to the World Economic Outlook amid a boost in private consumption, especially in rural areas
For FY26, ADB maintained India’s GDP growth projection at 7.2 per cent, as stated in its April outlook.

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 premium stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Budget and Markets

Gold price in Delhi today is ₹ 84,470, Click Here for other cities. Silver price in Delhi today is ₹ 84,470, Click Here for other cities.

First Published: Jul 17 2024 | 11:36 AM IST

Next Story