New Delhi, December 11
The Asian Development Bank (ADB) has cut India’s economic growth forecast for the current financial year 2024-25 to 6.5 per cent from seven per cent due to lower-than-expected growth in private investment and housing demand. The Multilateral Development Bank has also lowered India’s growth forecast for the fiscal year 2025-26. According to the report released today by the Asian Development Outlook (ADO), the change in US trade, finance and immigration policies may affect the development in developing Asia and the Pacific region and increase inflation. The report said that the economies of the Asia and Pacific region are expected to grow at a rate of 4.9 percent in 2024, which is slightly lower than the estimate of five percent made by ADB in September. ADB said, ‘India’s growth rate is estimated to be 6.5 percent in the current financial year due to lower-than-expected growth in private investment and housing demand. Earlier, the Indian economy was estimated to grow at a rate of seven percent. ADB has also reduced the growth rate estimate for the next financial year from 7.2 percent to seven percent.
RBI had also reduced the estimate
Last week, the RBI also cut its growth forecast for the current financial year to 6.6 percent from 7.2 percent. The central bank had increased the inflation estimate to 4.8 percent, seeing the slowdown in economic activities and the rise in the prices of food items. -News-Patiala