The Asian Development Bank (ADB) has retained its projection for India’s economic growth at 7% for FY25, with expectations of faster growth at 7.2% in FY26, as per its report released on September 25.

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• India’s growth forecast for FY25 remains at 7%, matching RBI’s projection.
• FY26 growth forecast is increased to 7.2%.
• Above-average monsoon expected to boost agricultural growth and rural economy in FY25.
• Inflation predicted to rise to 4.7% in FY24 due to high food prices.
• Inflation forecast for FY26 to ease to 4.5%.
• Monetary policy may stay restrictive longer than expected due to inflation.
• Current account deficit expected to widen to 1% in FY25 and 1.2% in FY26.
• Global geopolitical and weather shocks are risks to supply chains and agriculture.
• Government capital expenditure target in FY24 may face challenges.