ADB lowers FY24 GDP forecast to 6.3%, India Ratings raises it to 6.2%
- The Asian Development Bank (ADB) and India Ratings and Research have released contrasting forecasts for India’s economic growth in the fiscal year 2024 (FY24). While ADB has lowered its projection to 6.3%, India Ratings has raised it to 6.2%.
- ADB cites erratic monsoon patterns as a primary reason for revising India’s growth forecast down by 10 basis points to 6.3% for FY24. These patterns are expected to affect agricultural output.
- ADB also revised its inflation projection for India in FY24 to 5.5%, up from the previous 5%. Adverse weather conditions have led to food inflation, contributing to South Asia’s overall inflation rate. The continuation of the rice export ban could further escalate food price inflation.
- Despite the downward adjustment for FY24, ADB maintains its growth projection for FY25 at 6.7%. This optimistic outlook is based on expectations of rising private investment and industrial output driving economic growth.
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Published date : 21 Sep 2023 04:21PM