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ADB lowers India’s FY26 growth forecast to 6.5%
Hindustan Times East UP
|July 24, 2025
The Asian Development Bank (ADB) has trimmed its GDP growth forecast for India to 6.5% for FY26, down from its April estimate of 6.7%, due to concerns over the potential impact of the US tariffs and uncertainty surrounding related policy measures.
The Manila-headquartered organization also marginally lowered India’s FY27 growth outlook to 6.7% from 6.8% earlier.
“In addition to the effects of lower globalgrowth and the direct impact of additional US tariffs on Indian exports, heightened policy uncertainty may affect investment flows,” ADB said in its Asian Development Outlook July 2025 report.
“Despite this, economic activity remains robust, with domestic consumption set to grow strongly on the back of the revival of rural demand,” it added.
To be sure, global forecasts for India's growth remain mixed.
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