The Asian Development Bank (ADB) has revised its growth forecast for India downwards from 7.2% to 6.4% this year, due to a global slowdown, tight monetary conditions, and elevated oil prices. However, ADB predicts growth will bounce back to 6.7% in 2024-25, driven by private consumption and investment. ADB noted India's economic growth rate is still stronger than many peer economies, reflecting robust domestic consumption and less reliance on global demand. The report praised India's commitment to fiscal prudence and infrastructure initiatives like the Gati Shakti scheme. ADB expects geopolitical tensions and weather-related shocks to impact India's growth.
