Asian Development Bank Predicts 7% Growth for India in 2024
The Asian Development Bank (ADB) has kept its forecast for India’s economic growth unchanged at 7% for the fiscal year 2024. ADB has also called India the region’s fastest-growing economy.
Industrial and Agriculture Sectors
Robust growth is expected in India’s industrial sector, driven by manufacturing and strong construction demand. The agriculture sector is anticipated to rebound due to forecasts of an above-normal monsoon.
Investment and Inflation
Investment demand remains strong, led by public investment. The inflation rate is expected to slow to 2.9% this year due to easing global food prices and the lingering effects of higher interest rates.
Developing Asia and the Pacific
ADB has slightly raised its economic growth forecast for developing Asia and the Pacific to 5.0% this year, up from a previous projection of 4.9%. This adjustment is attributed to rising regional exports and resilient domestic demand. The growth outlook for next year remains at 4.9%.
Regional Insights
According to ADB Chief Economist Albert Park, most of Asia and the Pacific is seeing faster economic growth compared to the second half of last year. However, policymakers need to pay attention to risks such as election outcomes, interest rate decisions, and geopolitical tensions.
While regional inflation is moderating towards pre-pandemic levels, price pressures remain elevated in some areas. Food inflation remains high in South Asia, Southeast Asia, and the Pacific due to adverse weather and food export restrictions.
China’s Growth
The growth forecast for the People’s Republic of China (PRC) is maintained at 4.8% this year. A continued recovery in services consumption and stronger-than-expected exports and industrial activity are supporting the expansion, despite challenges in the property sector.
Doubts Revealed
Asian Development Bank -: The Asian Development Bank (ADB) is an organization that helps countries in Asia grow and develop by giving them money and advice.
7% Growth -: 7% growth means that the amount of money India makes from all its goods and services will be 7% more than the previous year.
Fiscal Year 2024 -: A fiscal year is a 12-month period used for budgeting and financial purposes. Fiscal Year 2024 means the year starting from April 2023 to March 2024.
Industrial Sector -: The industrial sector includes businesses that make things like cars, clothes, and buildings. It is expected to grow a lot.
Manufacturing -: Manufacturing is the process of making products in factories, like making toys or electronics.
Construction -: Construction is the work of building things like houses, roads, and bridges.
Agriculture Sector -: The agriculture sector includes farming activities like growing crops and raising animals.
Above-normal Monsoon -: An above-normal monsoon means more rain than usual, which is good for growing crops.
Developing Asia and the Pacific -: Developing Asia and the Pacific refers to countries in Asia and the Pacific Ocean area that are still growing their economies.
Inflation -: Inflation is when the prices of things we buy, like food and clothes, go up over time.
Global Food Prices -: Global food prices are the costs of food items around the world. If they go down, it means food becomes cheaper.
