New Delhi: The Asian Development Bank (ADB) on Wednesday (September 20) revised India’s growth forecast downward to 6.3% from 6.4% projected earlier. The ADB said this was being done because an inadequate and erratic monsoon had impacted agricultural production.

“Slowing exports could foment headwinds for the economy, and erratic rainfall patterns are likely to undermine agricultural output,” Economic Times quoted ADB as saying. However, the Bank retained its earlier growth forecast for next year, projecting that the Indian economy will grow 6.7%

"Inflation has moderated broadly, but the forecast for FY2023 (2023-24) is raised owing to a spike in food prices, and the forecast for FY2024 (2024-25) is marginally lowered as core inflation moderates," the ADB report said about inflation.

ADB also lowered the economic growth forecast for developing Asia to 4.7% this year, down from the 4.8% expansion the bank had forecast in April.

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