ADB lowered India’s GDP projection for FY23 to 6.3%.
The Asian Development Bank (ADB) lowered India’s gross domestic product (GDP) growth projection to 6.3 per cent from 6.4 per cent.
The GDP projection has been decreased due to slowing exports and the likely impact of erratic rainfall on agriculture output.
The GDP projection for fiscal (2024-2025) has been retained at 6.7%.
ADB has raised their inflation forecast to 5.5% from 5% estimated in April.
According to the Asian Development Outlook September 2023, India’s growth will be propelled by robust domestic consumption and investment including government capital expenditure.
India’s GDP grew by 7.8 per cent year in the current fiscal year.
ADB also lowered the economic growth forecast for developing Asia to 4.7 per cent for this year.
This year the Growth in China will be 4.9 per cent, slower than the 5 per cent estimated previously.
ADB cited three main risks – the impact of the weakness in China’s property sector, supply disruptions due to the Russia-Ukraine war and export curbs amid the risk of droughts and floods caused by El Nino.
