Archive · 23 Jul 2025
ADB Lowers India's Growth Forecast Amid US Tariff Concerns
The Asian Development Bank (ADB) has changed its prediction for how much India's economy will grow, lowering it from 6.7% to 6.5% for the year 2026.
This is because of potential tariffs from the US and the unclear rules surrounding them.
The ADB thinks India's services and farming industries will help the economy grow, and they expect prices to rise slower than they previously thought.
There's also a deadline of August 1 for potential new tariffs between India and the US, adding more uncertainty.
ADB lowered India's FY26 growth forecast to 6.5% due to US tariffs.
The revision cites impact of US baseline tariffs and policy uncertainty.
India's services and agriculture sectors are expected to drive growth.
The inflation forecast for FY26 was revised down to 3.8%.
US tariffs implementation deadline is August 1, with uncertainty around a trade deal.
- Who
- Asian Development Bank.
- What
- ADB lowered India’s growth forecast for FY26.
- When
- The forecast was lowered on Wednesday.
- Where
- India.
- Why
- Due to US tariffs and policy uncertainty.
Uncertainty over Trade Deal
Impact of US Tariffs
Trade Negotiations
Uncertainty over Trade Deal
India is engaged in high-stakes trade deal negotiations.
Impact of US Tariffs
US tariffs implementation deadline is August 1.
- FY26 Growth Forecast (Previous)
- 6.7%
- FY26 Growth Forecast (Revised)
- 6.5%
- FY26 Inflation Forecast (Revised)
- 3.8%
- US Tariff Deadline
- August 1
- FY27 Growth Forecast (Revised)
- 6.7%
