ADB Lowers India’s FY26 GDP Growth Forecast to 6.7% Amid Rising US Tariff Concerns.
Economy Business
In April 2025, the Asian Development Bank (ADB), headquartered in Manila, the Philippines, released its latest report titled Asian Development Outlook (ADO) April 2025: Trade Uncertainty Challenges Resilience in Asia and the Pacific.
- The report revised India's Gross Domestic Product (GDP) growth forecast for Financial Year 2025-26 (FY26) to 6.7%, down from its earlier estimate of 7%.
- This downward revision is attributed to external risks like potential US tariffs, though higher domestic demand, increasing rural incomes, and moderating inflation remain growth drivers.
Main Point :- (i) The report projects India’s GDP growth to rise marginally by 10 basis points (bps) to 6.8% in FY27, backed by supportive fiscal and monetary policies.
(ii) India’s inflation rate is forecasted to ease further, reaching 4.3% in FY26 and 4.0% in FY27, aligning with the RBI’s target range.
(iii) The Developing Asia region’s economies are expected to grow at 4.9% in 2025, slightly below the previous year’s 5.0%, and are projected to slow down further to 4.7% in 2026.
About Asian Development Bank (ADB)
President: Masato Kanda
Headquarters: Manila, the Philippines
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