ADB Projects Indian Economy to Grow at 7%: Agriculture and Services Drive Growth - Read Now 

The Asian Development Bank (ADB) has maintained its growth forecast for the Indian economy at 7% for the fiscal year 2024-25, with an optimistic outlook for 7.2% in 2025-26. This growth is anticipated due to an improvement in private consumption, driven primarily by strong rural demand linked to agricultural performance and sustained urban consumption. The ADB's latest report highlights the expected boost from enhanced agricultural output and increased government spending, indicating a robust economic trajectory for India.

Growth Forecast: ADB has confirmed a GDP growth estimate of 7% for the fiscal year 2024-25, with a slight increase to 7.2% projected for 2025-26. This prediction is consistent with earlier forecasts and reflects a resilient economic outlook.

Agricultural Impact: The expected growth is significantly influenced by improved agricultural production. The ADB cites strong rural demand as a critical factor, coupled with ongoing robust urban consumption that will further stimulate economic activity.

Consumer Spending: The report anticipates a boost in private consumption, bolstered by rural demand resulting from better agricultural yields. This increased consumer spending is expected to play a pivotal role in driving the economy forward.

Investment Landscape: While private investment prospects remain positive, the ADB notes that public capital expenditure, which has been high, is likely to slow down in the upcoming fiscal year. Recent policy measures aimed at providing employment incentives are expected to stimulate labor demand and create more job opportunities.

Inflation and Trade: The ADB also warns of elevated inflation rates due to rising food prices in the current fiscal year but anticipates a decrease in inflation for the following year. The trade balance is expected to improve, driven by a rise in service exports, although merchandise export growth may slow.