The Asian Development Bank (ADB) has retained India's growth forecast at 7% for the current financial year 2024 ending March 31, 2025.

It expects faster growth of 7.2% in the following financial year, according to the "Asian Development Outlook (ADO) September 2024" released on Wednesday.

"India's economy has shown remarkable resilience in the face of global geopolitical challenges and is poised for steady growth," ADB country director for India Mio Oka said in the report.

The forecast is in line with the Reserve Bank of India's 7% growth forecast for the current fiscal.

While GDP growth slowed to 6.7% year on year in the first quarter of FY2024, it is expected to gain momentum in the coming quarters with improvement in agriculture and a largely robust outlook for industry and services, the report stated.

"An above-average monsoon in most parts of the country will lead to strong agricultural growth, enhancing the rural economy in FY25," it said.

According to ADB's outlook inflation is likely to grow faster than anticipated to 4.7% in FY2024 due to elevated food prices, despite higher agriculture output expectations.