ADB Lowers India’s FY26 GDP Growth Forecast to 6.7% Amid Rising US Tariff Concerns.

Economy Business | Dated: 11 Apr 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

What is the recently revised GDP growth forecast for India for FY2025-26, as per the Asian Development Bank (ADB)?

Correct Answer: 6.7%

🚀 Quick Recap:

About Asian Development Bank (ADB)

  • President: Masato Kanda
  • Headquarters: Manila, the Philippines