look news india
It said that gross domestic product (GDP) growth slowed to 6.7 per cent in the first quarter (April-June) of the current fiscal year, but is expected to pick up on the back of improvement in the agriculture sector and a largely strong outlook for industry and services over the next few quarters.
Poised for steady growth
ADB India Director Mio Oka said India's economy has shown remarkable resilience amid global geopolitical challenges and is poised for stable growth. He said agricultural reforms will boost rural spending, which is in line with the effects of strong performance of industry and the service sector. The report said above-average monsoon in most parts of the country will lead to strong growth in the agriculture sector, boosting the rural economy in FY2024-25.
The report also expects private consumption to improve. This will be mainly due to strong agriculture and rural demand driven by already strong urban demand. The outlook for private investment is positive, but growth in public capital expenditure, which has been high so far, will slow down in the next financial year.
It said the recently announced policy provides employment-related incentives to workers and companies which may boost labour demand and create more job opportunities in the coming financial year.
CAD is expected to remain low
Industry and services are expected to perform strongly. The current account deficit (CAD) will remain low due to strong service exports and remittances from Indians living abroad. Inflation is expected to be higher than previously estimated in the current fiscal year due to rising food prices, although it is expected to soften in the next fiscal year.