Archive · 23 Jul 2025
ADB Lowers India's Growth Forecast Amid Trade Concerns
The Asian Development Bank (ADB) has slightly lowered its economic growth predictions for India.
They now think India will grow a little slower than they previously thought, especially because of worries about international trade and potential new taxes from the U.S. Even with this change, India is still expected to grow faster than many other big countries.
Good rains and a strong service sector will help India's economy.
Things should get better the following year as investments increase.
The ADB also decreased growth forecasts for other Asian countries.
ADB lowered India's FY26 growth forecast to 6.5% from 6.7%.
Trade uncertainty and higher US tariffs are cited as reasons for the decrease.
India remains one of the fastest-growing major economies despite the revision.
Services and agriculture are expected to be key drivers of growth.
Growth is forecast to improve to 6.7% in FY27 due to rising investments and reduced policy uncertainty.
- Who
- The Asian Development Bank (ADB).
- What
- ADB lowered India's economic growth forecast.
- When
- For FY26 and FY27.
- Where
- India and the Asia-Pacific region.
- Why
- Due to trade uncertainty, higher US tariffs, and weaker domestic demand.
- FY26 Growth Forecast
- 6.5%
- Previous FY26 Forecast
- 6.7%
- FY27 Growth Forecast
- 6.7%
- Reason for Downgrade
- Trade uncertainty and US tariffs
- ADB Regional Growth (2025)
- 4.6%