Multilateral development bank, the Asian Development Bank (ADB), on Tuesday retained India’s economic growth forecast at 6.5 per cent for the current fiscal (FY26). However, it cut the projection for the next fiscal (FY 27) by 20 basis points to 6.5 per cent.

“This adjustment reflects anticipated headwinds from newly imposed US tariffs on Indian exports. However, resilient domestic consumption and strong performance in service exports are expected to cushion the impact of these trade barriers,” ADB said in its ‘Asian Development Outlook (ADO) September 2025’.

However, the multilateral agency is optimistic about India’s long-term growth trajectory. “The implementation of tariffs will weigh on growth, but the overall impact on GDP is expected to be contained due to India’s relatively l

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