ADB raises India’s FY27 growth forecast to 6.9%

PTI

New Delhi

The Asian Development Bank (ADB) on Friday projected India's GDP growth to remain "robust" at 6.9% in the current fiscal, and rise to 7.3% in the next fiscal driven by strong domestic demand, and supported by easing financing conditions and lower US tariffs on Indian goods.

In its Asian Development Outlook April 2026 report, the ADB said a prolonged conflict in West Asia could undermine India's macroeconomic performance through multiple channels, including higher energy prices, trade flow disruptions, and weaker remittance inflows. It projected inflation to more than double from 2.1% in 2025-26 to 4.5% in the current fiscal due to a rebound in food prices from earlier declines, higher global oil prices, currency weakness, and rising precious metal prices. It projected inflation to ease to 4% in the 2027-28 fiscal on account of lower oil prices and moderating food prices.

"A prolonged conflict in West Asia is the single biggest risk to the (developing Asia and Pacific) region's outlook, as it could lead to persistently high energy and food prices and tighter financial conditions," ADB Chief Economist Albert Park said. "With renewed trade policy uncertainty posing 

additional risks, it is essential that governments implement sound macroeconomic policies to sustain growth and contain inflation, with targeted support measures to protect vulnerable households," he added.