The Asian Development Bank (ADB) has raised its growth outlook for India, projecting real GDP to expand by 6.9% in fiscal 2026–27 (FY27), up from an earlier estimate of 6.5% in its December 2025 update. The multilateral lender expects growth to edge higher to 7.3% in FY28, maintaining India among the fastest‑growing major economies in Asia despite a modest slowdown from an estimated 7.6% in FY26.
ADB attributes the upgrade primarily to resilient domestic demand, with private consumption supported by stronger real incomes and steady services activity. The bank also notes that higher private investment, supportive monetary policy, and ongoing structural reforms are helping underpin growth. Recent trade developments, including lower effective US tariffs on Indian exports and progress on broader trade agreements such as with the EU, are adding to the positive impulse in external demand.
Inflation remains a key concern. ADB projects headline inflation to rise to around 4.5% in FY27, before moderating to about 4.0% in FY28, as energy, food, and fertilizer prices along with global supply‑chain disruptions linked to Middle East tensions keep upward pressure on prices. The bank warns that renewed spikes in oil or food costs and geopolitical risks in West Asia could weigh on the outlook, even as India’s strong domestic fundamentals help cushion the impact.
Read Article: X to Launch Standalone XChat Messenger for iOS on April 17
