ADB Cuts India's FY26 Growth Forecast to 6.5%

The Asian Development Bank (ADB) on Wednesday lowered India's growth forecast for FY26 to 6.5% from 6.7% projected in April, on account of trade uncertainty and higher US tariffs that are expected to impact exports and investment.

- FE BUREAU

Despite the revision, India remains one of the fastest-growing major economies in the world, it said.

"India is forecast to grow by 6.5% this year and 6.7% next year—down 0.2 and 0.1 percentage points, respectively, from April projections—as trade uncertainty and higher US tariffs affect exports and investment," according to the Asian Development Outlook (ADO) July 2025.