Increasing expenditure on infrastructure development will give impetus to GDP, ADB made this comment in its Outlook

India's GDP growth forecast for the 2024 fiscal year has been upgraded by the Asian Development Bank. It now stands at 7% after ADB raised it from 6.7%. The GDP projections for the fiscal year 2025 have been raised by ADB from 7% to 7.2% concurrently.

The upward revision to economic growth forecasts, according to the regional development bank, was made in light of the robust public and private investment as well as the robust services sector. ADB's premier economic journal, Asian Development Outlook (ADO) April 2024, was published on Thursday.

According to ADB, higher capital expenditure on infrastructure development by both the central and state governments, increased private corporate investment, strong service sector performance and improving consumer confidence will serve as triggers for growth in fiscal 2024.

ADB also said growth will accelerate in fiscal 2025, supported by improved goods exports, manufacturing productivity, and increased agricultural output.
 
However, the growth projection for 2024-25 is lower than the estimated 7.6 per cent for the 2022-23 fiscal year, ADB said. In December last year, ADB had estimated the growth rate to be 6.7 per cent in the financial year 2024-25.