ADB cuts India growth outlook for FY26, FY27

Asian Development Bank (ADB) has pared its growth outlook for India, citing the drag from steep US tariffs imposed in August, the multilateral development agency said ina statement on Tuesday.

- Rhik Kundu

ADB expects India's economy to expand 6.5% in both fiscal years 2026 (FY26) and FY27.

(AFP)

The Manila-headquartered organization now expects the Indian economy to expand 6.5% in both fiscal year 2026 (FY26) and FY27, down from its April forecasts of 6.7% and 6.8%, respectively.

“While the FY25 forecast remains unchanged from ADB's July 2025 projection, the FY26 estimate has been revised downward from 6.7% to 6.5%. This adjustment reflects anticipated headwinds from newly imposed US tariffs on Indian exports,” ADB said.

“However, resilient domestic consumption and strong performance in service exports are expected to cushion the impact of these trade barriers,” it added.