The Asian Development Bank (ADB) raised India’s GDP growth forecast to 6.9% for FY2026–27 from its previous estimate of 6.5%, citing stronger consumption and lower tariffs imposed by the United States. However, the agency warned of risks from the West Asia conflict. In the Asian Development Outlook April 2026 released on Friday, the ADB said growth is likely to accelerate to 7.3% in FY2027–28. Meanwhile, inflation is projected to rise to 4.5% in the current fiscal year, it added, citing higher food and energy prices. The revision comes close on the heels of the World Bank’s update last week. Last Wednesday, the World Bank raised India’s growth estimate for FY2026–27 by 30 bps to 6.6%, partly supported by free trade agreements (FTAs), even as risks from the ongoing West Asia crisis persist. The ADB forecasts are in line with the RBI’s estimate of 6.9% growth for FY2026–27, with growth for the first quarter of the fiscal year projected at 6.8%.

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