Archive · 23 Jul 2025
ADB and Ind-Ra Downgrade India's Growth Forecast for FY26
Two groups, ADB and Ind-Ra, have lowered their predictions for how much India's economy will grow in the next year.
They now think it will grow a little less than previously thought.
This is because of some issues like new taxes from the US and uncertainty in the world.
However, India is still expected to grow quickly, helped by good weather, and easier borrowing.
Even though there are some problems, the economy is still expected to do well.
ADB and Ind-Ra reduced India's FY26 growth forecasts.
ADB now projects 6.5% growth, while Ind-Ra forecasts 6.3%.
The downward revisions are partly due to US tariffs and global uncertainty.
Despite the cuts, India is still considered a fast-growing major economy.
Favorable monsoons and monetary easing are expected to support growth.
- Who
- ADB and Ind-Ra
- What
- ADB and Ind-Ra cut India’s growth forecast for fiscal year 2025-26.
- When
- Forecasts were adjusted on Wednesday.
- Where
- India
- Why
- Due to US tariffs, global economic uncertainty, and weaker-than-expected investment climate.
Factors Hindering Growth
Factors Boosting Growth
Global Headwinds vs. Domestic Tailwinds
Factors Hindering Growth
US tariffs and global economic uncertainty are acting as headwinds, potentially slowing growth.
Factors Boosting Growth
Monetary easing and favorable monsoon are seen as tailwinds that may minimize the negative impact of the headwinds.
- ADB FY26 Growth Forecast
- 6.5%
- Ind-Ra FY26 Growth Forecast
- 6.3%
- RBI Growth Forecast (approx.)
- 6.5%
- Economic Survey Estimate
- 6.3% - 6.8%
- Primary Reason for Downgrade
- US tariffs
- Publication Date
- July 23, 2025