look news india
The Asian Development Bank (ADB) has projected India's economic growth at seven per cent for the financial year 2024-25. While India's economy is projected to grow at an accelerated rate of 7.2 per cent in the financial year 2025-26, data released on September 25 showed.
ADB's India Director said, India's economy has shown remarkable resilience in the face of global geopolitical challenges and has prepared the economy for sustained growth. This estimate is in line with the Reserve Bank of India's growth forecast of seven percent for the current financial year. This year the monsoon has been good in most parts of the country. Which will strengthen agricultural production. So the economy of rural India will get strengthened. According to ADB's September estimate, inflation is likely to rise faster than expected. ADB has estimated that inflation will rise sharply to 4.7 percent compared to 4.6 percent in the April report. Despite expectations of high agricultural production, consumer inflation was estimated to rise to 4.7 percent in FY 2023-24 due to high food prices. The effect of which was that the Central Bank of India had to avoid adopting a liberal monetary policy. However, inflation is expected to come down to 4.5 percent in FY 2025-26. Monetary policy is expected to be less restrictive in the next meeting of the central bank, but the rates will not be as expected earlier. The current account is expected to grow by one per cent in FY2024-25 and 1.2 per cent in the following year. Geopolitical shocks could affect global supply chains and commodity prices. Another risk is that the government fails to meet its capital expenditure target in 2024, ADB said.