New Delhi: Asian Development Bank on Thursday lowered India’s GDP growth projection to 6.6 per cent as against 6.9 per cent estimated earlier for the current fiscal on concerns of higher energy prices fuelled by the Middle East crisis.
Despite the growth moderation, India still continues to be the fastest-growing major economy in the world.
India’s GDP growth forecasts are revised down to 6.6 per cent for FY2026 (ending 31 March 2027) and maintained at 7.3 per cent for FY2027, Asian Development Outlook (ADO) July 2026 said.
ADB expects growth to rebound to 7.3 percent in FY28, unchanged from its earlier forecast and also higher than the IMF’s projection of 6.7 percent.
The report also lowered South Asia’s growth forecast to 6.0 percent in 2026 from 6.3 percent projected earlier, citing higher oil prices, rising freight costs, and uncertainty over remittance flows.
Despite the downgrade, ADB expects India to remain one of the fastest-growing major economies. It also raised its FY27 inflation forecast for India to 5.2 percent from 4.5 percent, reflecting the pass-through of higher energy and food prices, while retaining the FY28 inflation estimate at 4 percent.
Across developing Asia and the Pacific, ADB lowered its 2026 growth forecast to 4.9 percent from 5.1 percent, saying the prolonged Middle East conflict has disrupted energy supplies and supply chains, raising production costs and slowing economic activity.
