The Asian Development Bank (ADB) maintains its growth forecast for India's fiscal year 2024 at 6.4%

The Asian Development Bank (ADB) has upheld its earlier prediction of India's economic growth at 6.4 percent for the current fiscal year and 6.7 percent for the following year. The strong domestic demand is expected to continue propelling the region's recovery.

Furthermore, the Monetary Policy Committee of the Reserve Bank of India has also forecasted a GDP growth rate of 6.5 percent for the fiscal year 2023-24, indicating a positive outlook for India's economic growth.

In addition, Fitch Ratings and the World Bank have also revised their growth predictions for India upwards, forecasting a growth rate of 6.3 percent for the same period. This further validates the positive sentiment surrounding India's economic growth prospects.

The ADB's Asian Development Outlook update also indicates that inflation in developing Asian economies is expected to ease as fuel and food prices decrease, gradually returning to pre-pandemic levels. The ADB predicts that inflation will be around 3.6 percent this year and 3.4 percent in 2024, which is good news for the region's economies. Moreover, the Indian economy has experienced significant growth of 7.2 percent in the fiscal year 2022-23.

As per the observations made by the Chief Economist of ADB, Albert Park, the Asia-Pacific region is showing signs of gradual recovery from the pandemic. This positive development can be attributed to the rise in domestic demand, service activities, and a boost in tourism. However, the industrial sector and exports are still struggling to regain their footing, and the outlook for global growth and demand in the upcoming year looks bleak.

Previously, the ADB had predicted that India's economic growth would decline to 6.4 percent in the current fiscal year owing to high oil prices and strict monetary policies. On the other hand, China's growth is expected to be 5 percent this year and 4.5 percent next year, while the growth forecasts for Southeast Asia have been adjusted to 4.6 percent and 4.9 percent, respectively. The overall projection for Developing Asia is a growth rate of 4.8 percent this year and 4.7 percent next year.

According to Procurement Resource, India's economic growth has been sustained at 6.4 percent for the fiscal year 2024 by ADB due to strong domestic demand. The ADB predicts a decrease in inflation, with fuel and food prices expected to decline, returning to pre-pandemic levels. The growth is being driven by domestic demand and services activity, and India is also experiencing a boost from the tourism sector's strong recovery.