ADB ups India GDP growth to 7 pc, from 6.7, in 2025

GDP India

Rama Krishna Sangem

In a good news to stock markets, the Asian Development Bank (ADB) on April 11, Thursday upgraded India’s gross domestic product growth forecast for Financial Year 2024-25 (FY25) to 7 per cent from 6.7 per cent earlier, citing robust public and private investments and strong services sector.

However, it said unanticipated global events such as supply line disruptions to crude oil markets and weather shocks to agriculture are key risks to India’s economic outlook.

The forecast is part of the lender’s flagship economic publication, ‘Asian Development Outlook (ADO) April 2024’. “The triggers for growth in FY25 will come from higher capital expenditure on infrastructure development both by central and state governments, rise in private corporate investment, strong service sector performance and improved consumer confidence.

Growth momentum will pick up in FY26, backed by improved goods exports and an increase in manufacturing productivity and agricultural output,” ADB said.


Strong domestic demand

Mio Oka, ADB Country Director for India, said notwithstanding global headwinds, the country remains the fastest growing major economy on the strength of its strong domestic demand and supportive policies. “The Government of India’s efforts to boost infrastructure development while undertaking fiscal consolidation and provide an enabling business environment will help in increased manufacturing competitiveness to augment exports and drive future growth.”

ADB said a 17 per cent rise in central government capital expenditure in FY25, compared to the previous financial year, together with transfers to state governments will boost infrastructure investment. “A new government initiative to support urban housing for middle-income households is expected to further spur housing growth.

Private corporate investment is expected to get a boost with stable interest rates. With inflation moderating to 4.6 per cent in FY25 and easing further to 4.5 per cent in FY26, monetary policy may become less restrictive, which will facilitate rapid offtake of bank credit. Demand for financial, real estate and professional services will grow while manufacturing will benefit from muted input cost pressures that will boost industry sentiment. Expectations of a normal monsoon will help boost growth of the agriculture sector.”

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at