India's GDP Projected to Grow by 6.7% in FY2025, Says ADB
| Aspect | Details |
|---|---|
| Source | Asian Development Outlook (ADO) April 2025 |
| GDP Growth (FY2025) | 6.7% (ADB projection), 6.5% (RBI projection) |
| GDP Growth (FY2026) | 6.8% (ADB projection) |
| Key Growth Drivers | Domestic demand, rising rural incomes, moderating inflation |
| Inflation (FY2026) | Projected to moderate to 4.3%, further to 4% in FY2027 |
| Policy Measures | Repo rate cuts (50 basis points, latest rate: 6%) |
| Sectoral Outlook | Services Sector: Key growth engine; Agriculture: Strong growth; Manufacturing: Expected rebound |
| Urban Infrastructure | New government fund with ₹100 billion (USD 1.17 billion) allocation |
| Private Investment | Short-term challenges due to global uncertainty; long-term prospects improve |
| Risk Factors | Global economic uncertainties, US tariffs on Indian exports, possible commodity price increases |
| Mitigating Factors | India's strong macroeconomic fundamentals, policy space for monetary easing |
| ADB Disclaimer | Forecasts made before April 2, do not account for new US tariffs |