New Delhi: The Asian Development Bank (ADB) today kept its economic growth forecast for India unchanged at 7.4 percent for the current financial year and 7.8 percent for the next fiscal year 2016-2017.
ADB warned, Export could fall down due to weakness in external demand and the downside risk which the economy is facing due to sluggish private investment and weak rural demand.
India is on track to reach the update forecast of 7.4 percent in the fiscal year ending March 31, 2016, as growth picked up to 7.4 percent in the second quarter from 7 percent in the first quarter, it said. S&Ps Ratings Services also forecast 7.4 per cent GDP growth in 2015-16. It expects the growth to pick up further to over 8 per cent in 2016-17.
ADB said the leading indicators such as sales of vehicles, and air passenger traffic were gathering momentum. Average inflation in the first 7 months, at 4.6 per cent, is broadly in line with the forecast of 5 per cent in 2015-16 as inflationary pressures are expected to pick up in the remaining months as crude oil prices increase and economic activity accelerates, it added.