The Asian Development Bank (ADB) has projected India’s Gross Domestic Product (GDP) to grow by 6.7% in the fiscal year 2025 (FY2025), as per its April 2025 Asian Development Outlook. This projection underscores India’s economic resilience amidst global uncertainties and highlights the country’s robust domestic demand and policy support as key growth drivers.
The ADB attributes this optimistic growth forecast to several factors:
The government has allocated ₹100 billion (approximately USD 1.17 billion) for urban infrastructure development, aiming to enhance urban living standards and stimulate economic growth.
While the outlook is positive, certain risks could impact growth:
However, India’s strong macroeconomic fundamentals and policy space for further monetary easing are expected to mitigate these risks.
Understanding the ADB’s GDP projection is crucial for aspirants of government exams, especially those focusing on economics, current affairs, and policy analysis. Questions related to economic forecasts, growth drivers, and sectoral performance are common in exams like UPSC, SSC, and banking services.
The ADB’s projection serves as a benchmark for policymakers to assess the effectiveness of current economic strategies and to make informed decisions regarding fiscal and monetary policies. It also provides insights into areas requiring attention, such as mitigating external risks and enhancing sectoral growth.
India’s economic growth has been a subject of global interest, with the country consistently ranking among the fastest-growing major economies. Over the past decade, structural reforms, digitalization, and policy initiatives have contributed to this growth trajectory. The ADB’s projections reflect the continuation of this trend, emphasizing the importance of sustained policy support and economic resilience.
The Asian Development Bank (ADB) has projected India’s GDP to grow at 6.7% in the fiscal year 2025.
Key drivers include strong domestic demand, moderating inflation, fiscal support, and monetary easing by the Reserve Bank of India.
The services sector (including exports, education, and health), agriculture (especially rabi crops), and manufacturing are expected to lead growth.
Risks include global economic slowdowns, rising commodity prices, and external trade pressures like US tariffs.
Such economic projections help candidates understand macroeconomic trends, government policy impacts, and global economic linkages—common topics in exams like UPSC, SSC, Banking, and PCS.
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