The Asian Development Bank (ADB) raised India’s GDP growth forecast for the current fiscal to 7 per cent from 6.7 per cent earlier. The robust growth will be driven by public and private sector investment and improvement in consumer demand, the Manila-based multilateral institution said.

In its April edition of the Asian Development Outlook, ADB said India would remain “a major growth engine” in the Asia and Pacific region.

For the 2025-26 fiscal, ADB has projected India’s growth at 7.2 per cent. Growth will be robust despite moderating in FY2024 and FY2025, it said.

The growth estimates for the current fiscal are lower than the 7.6 per cent estimated GDP expansion in 2022-23. Strong investment drove GDP growth in the 2022-23 fiscal as consumption was muted.

In December, ADB had projected that the Indian economy would expand by 6.7 per cent in the 2024-25 fiscal.

“The economy grew robustly in fiscal 2023 with strong momentum in manufacturing and services. It will continue to grow rapidly over the forecast horizon.”

ADB’s growth forecast for the current fiscal is in line with RBI’s projections.