The Asian Development Bank (ADB) has lowered its forecast for India’s economic growth in the current fiscal year 2023-2024 from 6.4% to 6.3% and raised its inflation forecast to 5.5% from 5%, Report informs referring to the bank’s website.
Among the reasons for the downward change in economic growth forecast, the ADB cited a decline in agricultural production in India due to the low intensity of monsoon rains in the summer of 2023. According to analysts, this will affect the rise in the cost of the food basket and lead to increased inflation.
In April-June, the country’s GDP growth was 7.8% against 13.1% in the same period of the 2022-2023 financial year, the Ministry of Statistics and Program Implementation of India reported earlier.