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The Asian Development Bank (ADB) in its Asian Development Outlook September 2023 has said that it has marginally lowered India's growth forecast to 6.3 per cent for the current financial year from its earlier projection of 6.4 per cent owing to slowing exports and the likely impact of erratic rainfall on agriculture output.

Further, it said Indian growth in the rest of this fiscal year and next will be propelled by robust domestic consumption as consumer confidence improves, and by investment, including large increases in government capital expenditure. India’s economy grew by 7.8 per cent year on year in the first quarter of fiscal year 2024 (ending March 31, 2024), reflecting strong growth in services and rising investment fueled by public investment and bank credit to the private sector.

Besides, ADB said the downside risks arise from global geopolitical tensions, which may further create economic uncertainty and/or lead to a rapid rise in global food prices. It also said further weather-related shocks either at the time of harvesting of kharif season (July-October) or during the October-April rabi season may further affect agriculture growth.