ADB Retains FY26 Growth projections of India at 6.5 percent

1. Growth Projection

• The Asian Development Bank (ADB) has stuck to its predictions of a growth in the Gross Domestic Product (GDP) of India of 6.5 percent in FY 2025-26.
• The ADB is also estimating 6.5 percent growth rate in FY 2026-27. This is a minor revision of its previous estimate of 6.7 per cent that same year.

2. Rationale and Context

• The ADB credited the fact that India has a good economic performance with a solid 7.8% growth in the first quarter (Q1) of FY26.
• Nonetheless, it sounded a warning bell, implying that the high US import tariffs might possibly slow down the growth towards the second half of the FY26 and FY27.

3. Regional Standing

• At the South Asia region, ADB projects a growth of 5.9% in 2025.
• India lies to be rated among the most rapidly rising economies within the region, only seconded by Bhutan.

The Asian Development Bank (ADB) is about

• ADB is one of the most prosperous multilateral development banks that is aimed at the development of sustainable and inclusive economic growth in the Asian continent and the Pacific.
• Headquarters: Mandaluyong, Metro Manila, Philippines.