The Asian Development Bank (ADB) on Tuesday retained its India growth projection at 6.5% for FY26, but trimmed the FY27 growth projection by 20 basis points to 6.5%, as the steep US tariffs levied on exports are expected to weigh on India’s growth.

However, resilient domestic consumption and strong performance in service exports are expected to cushion the impact of these trade barriers, it said.

What did ADB India director say?

“Despite ongoing trade challenges, we remain optimistic about India’s long-term growth trajectory,” said ADB country director for India Mio Oka.

“The implementation of tariffs will weigh on growth, but the overall impact on GDP is expected to be contained due to India’s relatively lower exposure to the US market, increased exports to alternative markets, s

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