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The Asian Development Bank (ADB) in its July edition of the Asian Development Outlook (ADO) has maintained India’s GDP growth forecast at 7 per cent for the current financial year (FY25), citing that a rebound in agriculture is expected given above-normal monsoon projections.

It stated the Indian economy is on track to grow by 7 per cent in FY25 (ending 31 March 2025) and 7.2 per cent in next financial year, as projected in ADO April 2024. The Indian economy logged a growth rate of 8.2 per cent for the financial year ended March 2024, as against 7 per cent in the previous fiscal year. 

It stated, services continued to expand robustly in Q4 of FY24, and the forward-looking services PMI is well above its long-term average, it said, adding, industry is also expected to grow robustly, driven by manufacturing and strong demand for construction led by housing, it said. With regard to inflation, it has also retained its forecast at 4.6 per cent for the current financial year and expects it to marginally decline to 4.5 per cent next fiscal.