ADB upgrades FY26 India growth forecast to 7.2%

STRONG Q2, CONSUMPTION BOOST BEHIND UPWARD REVISION

- FE BUREAU

THE ASIAN DEVELOPMENT Bank on Wednesday raised India's growth outlook for FY26 to 7.2%,a 0.7-percentage-point upgrade driven by stronger JulySeptember quarter performance and a clear boost to consumption following recent tax cuts.

The forecast for FY27, however, remains unchanged at 6.5%.

This upgrade to India's outlook is the primary driver behind the Asian Development Outlook (ADO), December 2025, raising the developing Asia and Pacific region's 2025 growth projection to 5.1%, up from 4.8% in September.