Archive · 23 Sep 2026
ADB Lifts India FY27 Growth Forecast to 7% Amid Investment
The Asian Development Bank expects India’s economy to grow faster than it previously predicted.
It now forecasts 7% growth for FY27.
The bank says investment and exports of services are helping the economy.
India’s economy grew 7.8% in the first quarter of FY27.
Services grew especially strongly, while manufacturing also expanded.
Government spending and private companies’ investments helped increase economic activity.
The bank expects technology services and electronics exports to continue supporting growth.
It lowered its inflation forecast to 5% for FY27.
However, conflicts, energy prices, unusual weather, and weaker crops could create problems.
The Asian Development Bank raised India’s FY27 growth forecast to 7% from 6.6%.
ADB lowered its FY28 growth projection to 7.1% from 7.3%.
India’s GDP grew 7.8% year-on-year in the first quarter of FY27.
Investment, services exports, manufacturing, and government spending supported the stronger outlook.
ADB cut its FY27 inflation forecast to 5% but warned of geopolitical and weather-related risks.
- Who
- The Asian Development Bank and the Indian economy.
- What
- ADB raised India’s FY27 growth forecast to 7% and lowered its FY27 inflation forecast to 5%.
- When
- In the Asian Development Bank’s September 2026 Asian Development Outlook; the cited GDP performance covers the first quarter of FY27.
- Where
- India, with risks also linked to geopolitical tensions in the Middle East.
- Why
- Stronger investment, resilient services exports, robust first-quarter growth, and continued public and private spending improved the outlook.
- FY27 growth forecast
- 7%, raised from 6.6%
- FY28 growth forecast
- 7.1%, lowered from 7.3%
- First-quarter FY27 GDP growth
- 7.8% year-on-year
- First-quarter services growth
- 10%
- First-quarter manufacturing growth
- 9.2%
- First-quarter gross fixed capital formation
- Up 11.9%, its fastest pace in four years
- FY27 inflation forecast
- 5%, lowered from 5.2%