ADB trims India's FY27 growth forecast by 20 bps to 6.5%

The Asian Development Bank (ADB) on Tuesday cut India’s growth forecast for next financial year (FY27) by 20 basis pointsto6.5 percent, citingthe impact of steep tariff hikes by the US. It however retained its FY26 projection at 6.5 percent, in line with July update.

- SHIVA RAJORA

“India faces the steepest tariff hikes among developing Asian economies, prompting a downgrade in its growth outlook. The sharp escalation in tariffs is expected to weigh heavily on key export sectors such as textiles, garments, jewellery, shrimp and chemicals,” ADBsaid in itsSeptember Asian Development Outlook.

The Manila-based lender said weaker exports would weigh on GDP in both FY26 and FY27. “Net exports will subtract from growth more than previously forecast in April,” itadded.