| Syllabus: GS- III, Subject: Economy, Topic: Growth and Development, Inclusion, Issue: Reports and indicators for development |
Context: Asian Development Bank (ADB) forecast on India’s GDP.
Key highlights of forecast:
- ADB raises India’s GDP growth forecast for 2024-25 to 7% from 6.7%, citing robust investment and improving rural economy
- India’s GDP is projected to expand by 7.2% in fiscal 2025-26 by ADB.
- ADB’s forecast is still slower than India’s NSO estimate of 7.6% growth.
Key concerns:
- Global risks like oil price hikes or high Western interest rates.
- Project completions in the private sector had failed to match rising project announcements
- Rupee sensitive to Western interest rates; India most affected in Asia by high rates.
Suggestions:
- Create Special Economic Zones (SEZ) to boost exports and integrate better with global supply chains.
- Improve logistics infrastructure promptly amidst global trade challenges.
