The Asian Development Bank (ADB) has raised India's GDP growth forecast for FY 25 to 7% from the previous estimate of 6.7%.

This growth will be driven by robust investment in public and private sectors, as well as an improvement in consumer demand. For the 2025-26 fiscal, ADB has projected India’s growth at 7.2%. The growth estimates for the current fiscal are lower than the 7.6% estimated GDP expansion in 2022-23 fiscal, where strong investment was the primary driver.

ADB’s Outlook on India’s Economy: India will remain a “major growth engine” in the Asia and Pacific (APAC) region, according to the ADB. Growth will be robust despite moderating in FY2024 and FY2025.The triggers for growth in FY2024 will come from higher capital expenditure on infrastructure development, rise in private corporate investment, strong service sector performance, and improved consumer confidence and Growth momentum will pick up in FY2025, backed by improved goods exports and an increase in manufacturing productivity and agricultural output.

 There will be risks to the economic growth of India and some of them can be Unanticipated global shocks such as supply line disruptions to crude oil markets and weather shocks that impact agriculture output are key risks.