Archive · 23 Jul 2025
ADB Revises India's Growth Forecast Down to 6.5% for FY26
The Asian Development Bank (ADB) has adjusted its prediction for how much India's economy will grow.
They now expect it to grow by 6.5% in 2026, slightly down from the previous estimate of 6.7%.
This change is mainly because of concerns about trade, especially new tariffs from the US, and general uncertainty about future policies.
Despite this adjustment, India is still considered a fast-growing economy.
The growth will likely come from people buying things and from the services and agriculture sectors.
The bank expects the economy to get even better in 2027 because of more investments and better financial conditions.
ADB has lowered India's FY26 growth forecast to 6.5% from 6.7%.
The revision is primarily due to US tariffs, policy uncertainty, and lower global growth.
Despite the revision, India remains one of the fastest-growing major economies.
Economic activity remains robust, with domestic consumption expected to grow.
Growth is projected to improve to 6.7% in FY27 due to rising investments and favorable financial conditions.
- Who
- Asian Development Bank (ADB)
- What
- ADB lowered India's growth forecast for FY26.
- When
- The forecast was lowered on Wednesday.
- Where
- India
- Why
- Due to trade uncertainty, higher US tariffs, and lower global growth.
Positive Outlook
Cautious Outlook
Economic Stability
Positive Outlook
India's fiscal position remains strong, with the government on track to meet its deficit reduction targets.
Cautious Outlook
Focus on risks associated with trade uncertainty and tariffs.
- FY26 Growth Forecast (ADB)
- 6.5%
- Previous FY26 Forecast
- 6.7%
- Reason for Revision
- US tariffs and policy uncertainty
- FY25 Growth Rate
- 6.5%
- FY27 Growth Projection
- 6.7%