The Asian Development Bank (ADB) has kept its growth forecast for India’s fiscal year 2023-2024 (FY24) at 6.4%, citing strong demand. The ADB’s forecast is unchanged from its previous forecast in April 2023.
The ADB said that India’s economy is expected to continue to grow at a robust pace in FY24, driven by strong private consumption and investment. The bank also said that the government’s fiscal stimulus is expected to support growth in the near term.
However, the ADB warned that downside risks to the growth outlook include rising inflation, tighter financial conditions, and geopolitical tensions. The bank said that these risks could dampen demand and slow the pace of economic growth.
Despite these risks, the ADB said that India’s economy is well-positioned to weather the headwinds. The bank said that India’s strong fundamentals, including a large domestic market and a young population, will help to support growth in the long term.
The ADB’s forecast is in line with the views of other international organizations. The International Monetary Fund (IMF) has also forecast that India’s economy will grow by 6.4% in FY24.
The ADB’s forecast is a positive sign for India’s economy. It suggests that the economy is on track to recover from the COVID-19 pandemic and continue to grow at a healthy pace. However, the ADB has warned that there are some risks to the growth outlook. These risks will need to be monitored carefully in the coming months.