ADB Lowers India's Growth Forecast Amid Global Economic Shifts

The Asian Development Bank has reduced India's economic growth forecast for the financial year to 6.5% from 7% due to slower private investment and housing demand. Despite other global challenges, India's economy remains robust, aided by strong agricultural output and a resilient services sector.

In a significant adjustment to its economic projections, the Asian Development Bank (ADB) has slashed India's growth forecast for the current financial year from 7% to 6.5%. This revision comes on the back of slower-than-anticipated growth in private investment and housing demand.

The bank's latest Asian Development Outlook report highlights that while regional economies in Asia and the Pacific are poised to grow at 4.9% in 2024, potential changes in US trade, fiscal, and immigration policies could exert downward pressure on growth.

Despite these challenges, India's economy is expected to remain robust, buoyed by higher agricultural output and a strong services sector. Furthermore, the report notes the resilience of Southeast Asia, with growth forecasts slightly increased, driven by manufacturing exports and public capital investments.

(With inputs from agencies.)