Asian Development Bank (ADB) on Wednesday lowered India’s Gross Domestic Product (GDP) growth forecast for FY25 to 6.5%. Earlier, ADB had estimated it to be 7%.
The Asian Development Bank has lowered India’s GDP growth forecast due to lower-than-expected growth in private investment and housing demand. The multilateral development bank has also lowered India’s GDP growth forecast for the financial year 2025-26.
Asian Development Bank forecast for India’s GDP growth for FY26 lowered to 7%
The Asian Development Bank has lowered India’s GDP growth forecast for FY26 to 7%. Earlier, the bank had estimated this at 7.2%.
ADB also said in its report that Asia and Pacific economies are expected to grow at a growth rate of 4.9% in 2024, slightly lower than ADB’s September forecast of 5%.
Morgan-Stanley also reduced India’s GDP growth forecast
A few days ago, Morgan Stanley revised India’s GDP growth rate forecast for FY25 to 6.3%. The multinational investment bank and financial services company had earlier estimated this at 6.7%. Morgan Stanley has done this downgrade after the growth slowdown in the quarter ending September 2024.
GDP growth declined to 5.4% between July and September
India’s GDP growth slowed to 5.4% year-on-year (YoY) in the July-September quarter of 2024, its lowest level since March 2023. GDP growth has slowed due to the poor performance of the manufacturing sector.
Growth was 4.3% in the third quarter of 2023. At the same time, it was 8.1% in the same quarter a year ago (Q2FY24). In the previous quarter i.e., Q1FY25, it was 6.7%. India’s GVA grew at the rate of 5.6% in the July-September quarter. GVA growth was 7.7% in the same quarter a year ago. At the same time, GVA growth was 6.8% in the previous quarter.
