GDP will grow at the rate of seven percent, ADB said - better monsoon is expected to improve the agricultural sector

The Asian Development Bank (ADB) has kept India's economic growth prediction at 7% for the current fiscal year. According to reports, the agricultural industry is predicted to improve as a result of above-average monsoon rainfall.

This ADB projection comes as the International Monetary Fund has raised its GDP growth forecast for India from 6.8 percent to 7 percent. Last month, the RBI raised its growth prediction from 7% to 7.2%. ADB said, the Indian economy is on track to grow at a rate of 7.2 percent in 2025-26, as estimated in April 2024. The report said, after slow growth in 2022-23, the agriculture sector is expected to improve given the above-normal monsoon projections. This is despite the slow progress of the monsoon in June. Improvement in agriculture will be important to maintain the pace of growth in rural areas. Regarding the growth forecast for developing Asia, ADB said, it has been revised to five percent for 2024-25, while it has been maintained at 4.9 percent for 2025-26.