New Delhi: The Asian Development Bank (ADB) has raised India’s growth forecast to 6.7 per cent for the current financial year from its earlier projection of 6.3 per cent on account of higher-than-expected second quarter numbers. The second quarter of FY24 saw higher-than-expected GDP growth of 7.6 per cent, causing growth in the first half (April-September) to expand by a strong 7.7 per cent, according to the Asian Development Outlook December 2023 released on Wednesday.
Economic data also indicate that the industrial sector in particular, including manufacturing, mining, construction, and utilities, grew by double digits, it said.
“For FY24 as a whole, agriculture is expected to grow slightly slower than expected, but this will be more than offset by industry’s much stronger-than-expected growth, hence the upward revision,” it said.
On the demand side, it said, higher growth in fixed investment driven by increased capital spending by the central government and state governments will compensate for lower growth in private consumption expenditure and weaker-than-expected exports.
