Asian Development Bank keeps India’s growth estimate at 6.4% for current fiscal

New Delhi, July 19 (KNN) India's economic growth estimation has been retained by the Asian Development Bank (ADB) at 6.4% for the ongoing fiscal year.

While for the next financial year it has retained it at 6.7%. It said robust domestic demand will continue to support recovery in the region.

The ADB also said inflation is expected to continue to fall, approaching pre-pandemic levels, as food and fuel prices decline.

For developing economies in Asia, the ADB has forecast 3.6% inflation this year and 3.4% in 2024.

The Indian economy expanded 7.2% in FY23. ADB's chief economist Albert Park said Asia and the Pacific continues to recover from the COVID-19 pandemic at a steady pace.

“Domestic demand and services activity are driving growth, while many economies are also benefiting from a strong recovery in tourism. However, industrial activity and exports remain weak, and the outlook for global growth and demand next year has worsened,” Park added.

In April, the ADB had projected that India's economic growth is expected to moderate to 6.4% in the current financial year due to tight monetary conditions and elevated oil prices.  (KNN Bureau)