Archive · 26 Aug 2026
ADB Economist Sees Indian Growth Despite Tariff, West Asia Risks
India’s economy may continue growing well despite several problems around the world.
Albert Park of the Asian Development Bank said India has several forces supporting growth.
However, the bank lowered its forecast for India’s growth this fiscal year to 6.6%.
It expects growth to reach 7.3% in FY28.
The conflict-related crisis in West Asia could affect Asian economies.
Changes to US tariffs are another source of uncertainty.
Park also warned that a severe El Niño could hurt farming and the climate.
Experts said money will be important for dealing with urbanisation, climate problems and conflicts.
ADB Chief Economist Albert Park said India retains enough growth drivers to achieve a good growth rate this year.
The Asian Development Bank lowered India’s growth forecast for this fiscal to 6.6% from 6.9%.
The ADB expects India to grow by 7.3% in FY28.
Park said the West Asia crisis, possible US tariff changes and a severe El Niño create uncertainty.
The ADB lowered its 2026 growth forecast for developing Asia and the Pacific to 4.9%, from 5.5% growth in 2025.
- Who
- Albert Park, Chief Economist of the Asian Development Bank, and Dhun Davar, Deputy CEO and Chief of Programmes at AVPN.
- What
- The ADB expressed some optimism about India’s growth while lowering its forecast and highlighting risks from regional crises, tariffs and El Niño.
- When
- Park made the comments on Wednesday; the cited Asian Development Outlook update was issued in July 2026.
- Where
- The interview took place while Park was in New Delhi for the AVPN Global Conference 2026.
- Why
- India’s growth drivers may offset external shocks, but West Asia instability, possible US tariff changes and El Niño could weigh on growth.
Growth Optimism
Risk Concerns
India’s near-term outlook
Growth Optimism
Albert Park said India has enough growth drivers to achieve a good rate of growth this year despite external shocks.
Risk Concerns
The ADB reduced its forecast for India’s growth this fiscal year to 6.6%, reflecting continuing risks and uncertainty.
Impact of global developments
Growth Optimism
The diminished prominence of US tariffs after the Supreme Court ruling may reduce one source of pressure on Asian economies.
Risk Concerns
The US administration is seeking to restore some tariffs, while the West Asia crisis and El Niño could create additional economic, climate and agricultural shocks.
Resources for addressing challenges
Growth Optimism
Capital can support responses to problems linked to urbanisation, climate and conflict.
Risk Concerns
Dhun Davar stressed that the availability of such capital is itself a crucial challenge.
- India growth forecast
- 6.6% for this fiscal year, revised down from 6.9%
- India FY28 forecast
- 7.3% growth
- Developing Asia and Pacific forecast
- 4.9% growth in 2026, compared with 5.5% growth in 2025
- Key external risk
- The crisis in West Asia
- Climate risk
- A potentially severe El Niño affecting climate and agriculture
- Tariff situation
- The US Supreme Court struck down the tariffs discussed by Park, while the US administration is seeking to bring some back
- Additional funding concern
- Dhun Davar said capital availability is important for urbanisation, climate and conflict-related challenges