ADB released data on India's growth rate, expected to be 7 percent in the current financial year

New Delhi On Wednesday, the Asian Development Bank has maintained the country's economic growth rate at 7 percent for the current financial year 2024-25 in view of India's growing economy. Along with this, the bank has said that the economy is expected to grow in the coming quarters due to better agricultural production and high government expenditure.

In its September Asian Development Outlook (ADO), ADB said that exports in the current financial year 2024-25 will be higher than previously estimated, thanks to the increase in services exports. However, in the coming financial year 2025-26, commodity export growth will be slower than expected. ADB said, “GDP growth is expected to be 7 percent in the financial year 2024-25 i.e. ending March 31, 2025 and 7.2 percent in the financial year 2025-26. Both are equal to the forecast of ADO April 2024. Also, India's growth prospects remain strong.”

8.2 percent rate

The Indian economy grew at a rate of 8.2 percent in the last financial year 2023-24. The Reserve Bank of India (RBI) has projected a growth of 7.2 percent in the current financial year. It said, GDP growth slowed to 6.7 percent in the first quarter of the current financial year i.e. April-June, but it is expected to pick up in the coming quarters due to improvement in the agriculture sector and a largely strong scenario for business and services.

more employment opportunities

It said, the recently announced policy offering employment-linked incentives to workers and companies may boost labour demand and create more job opportunities in the next fiscal year. Industry and services are expected to continue to perform strongly. Strong service exports and capital inflows will moderate the current account deficit. Rising food prices are expected to push inflation higher than previously estimated in the current fiscal year, although it is expected to ease in the next fiscal year.

(With agency input)