(MENAFN) The Asian Development Bank (ADB) has revised its growth projections for India, painting a promising picture of the nation's economic trajectory in the coming years. In a notable upgrade, the ADB has upped India's GDP forecast for the current fiscal year from 6.7 percent to a robust 7 percent, underscoring the country's pivotal role as a "major growth engine" within the Asia-Pacific region.
Looking ahead, the Manila-headquartered ADB anticipates India's GDP to expand further, projecting a growth rate of 7.2 percent for the subsequent financial year (2025-26). This optimistic outlook is underpinned by factors such as robust investment inflows, a resurgence in consumer spending, and a notable uptick in exports, all of which are poised to fuel India's economic momentum in the foreseeable future.
The ADB's updated assessments come in the wake of a recent analysis by Bloomberg Economics, which suggested that India is poised to emerge as the leading contributor to global growth in purchasing power parity (PPP) by 2028. In line with this trajectory, Bloomberg Economics envisions India's growth accelerating to an impressive 9 percent by the end of the decade, a significant uptick from the estimated 7.6 percent recorded during the previous fiscal year that concluded on March 31.
Key drivers of India's burgeoning economy include thriving sectors such as electronics manufacturing and aviation, which have emerged as vibrant engines of growth amidst evolving market dynamics. Additionally, India's demographic dividend, characterized by its large and youthful population, is poised to be a cornerstone of its economic expansion, as it continues to drive consumption, innovation, and productivity gains.
Highlighting India's resilience and adaptability in the face of challenges, recent GDP data reflects a notable uptick, with the country recording a robust growth rate of 8.4 percent in the third quarter of the financial year 2023-24 (October to December), up from 7.6 percent in the preceding quarter (June to September). Moreover, New Delhi's upward revision of its GDP growth outlook for the fiscal year 2023-24, from 7.3 percent to 7.6 percent, further underscores the buoyancy of India's economic landscape.
As India solidifies its position as a key player in the global economic arena, the ADB's revised growth projections serve as a testament to the country's resilience, dynamism, and potential to drive inclusive and sustainable growth in the Asia-Pacific region and beyond.
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