Risky premise

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.


  • Create Special Economic Zones (SEZ) to boost exports and integrate better with global supply chains.
  • Improve logistics infrastructure promptly amidst global trade challenges.
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