The Asian Development Bank (ADB) has upgraded its forecast for India’s economic growth in the coming fiscal year (FY25) to 7%, according to a report released on Thursday. This marks an upward revision from their previous estimate of 6.7%.

The ADB cites strong indicators like robust public and private investments along with a thriving services sector as the key drivers behind this optimistic outlook. This revision aligns with the Reserve Bank of India’s (RBI) projections for FY25, which also pegged growth at 7%.

However, the report acknowledges potential risks to this positive trajectory. Unforeseen global disturbances, such as disruptions in crude oil supply chains or adverse weather impacting agricultural output, could pose challenges to India’s economic stability.

This news comes from the latest edition of ADB’s flagship economic publication, the Asian Development Outlook (ADO) for April 2024. The report highlights India’s promising economic prospects, fueled by domestic investments and a resilient services sector.