ADB PROJECTS INDIA’S GDP GROWTH IN 2024-25 AT 7%

Why in the news?

ADB projects India’s GDP growth at 7% in 2024-25, with retail inflation expected to ease; downside risks include global shocks.

About ADB’s Economic Projections:

  • The Asian Development Bank (ADB) predicts India’s GDP growth to slow from 7.6% in 2023-24 to 7% in 2024-25, before rebounding to 7.2% in 2025-26.
  • Retail inflation is expected to ease to 4.6% this year and 4.5% in 2025-26, with food inflation dropping to 5.7% due to normal farm output.
  • ADB cites potential downside risks from global shocks like crude oil price spikes and domestic uncertainties in agriculture, alongside upside potential from accelerated FDI inflows and enhanced global growth.
source:aravot
About Asian Development Bank (ADB):

  • Established: on December 19, 1966, as a multilateral development bank.
  • Mission: Foster economic growth and cooperation in the Asia-Pacific Region.
  • Functions: Provides loans, technical assistance, grants, equity investments, and facilitates policy dialogues and advisory services.

Headquarters and Membership:

  • Headquarters: Manila, Philippines.
  • Membership: 68 members, with 49 from Asia-Pacific and 19 from outside.
  • Control: Governed by a board of governors with a weighted voting system based on capital subscriptions.
  • Major shareholders: Japan, United States, China, India, Australia, with respective shares.

Note:

ADB Conference:

  • Theme (2023): Strengthening Regional Cooperation and Integration through Economic Corridor Development (ECD).
  • Objective: Integrate spatial transformation/Area-Centric Approach with ECD, foster regional cooperation, share ECD framework, and operational guidelines.

Source:

https://www.thehindu.com/business/Economy/if-farm-output-returns-to-trends-retail-inflation-to-ease-to-46-this-year-and-food-inflation-to-cool-57-adb-projects/article68054267.ece#:~:text=India’s%20economy%20is%20expected%20to,Development%20Bank%20(ADB)%20said.