NEW DELHI: The Asian Development Bank (ADB) on Wednesday retained India’s economic growth forecast at 6.4 per cent for FY24 on recovery in consumption demand in both rural and urban areas, but said suppressed exports due to global slowdown will be a drag.

The Indian economy grew 7.2 per cent in 2022-23. In an update to its Asian Development Outlook (ADO), ADB lowered its inflation projection for current fiscal year (FY24) at 4.9 per cent, from 5 per cent pegged in April, on softening crude oil prices, even though it estimated core inflation to remain stubbornly high.

Assuming normal rainfall and other weather factors, and no further geopolitical shocks, India is expected to grow by 6.4 per cent in FY2023 (current fiscal) and 6.7 per cent in FY2024, as projected in ADO April 2023, ADB said.

In current fiscal, consumption demand in India is to recover with improvement in both rural and urban demand.