ADB Raises India’s GDP Forecast for FY27 from 6.5% to 6.9%
In April 2026, Asian Development Bank (ADB) released its latest “Asian Development Outlook (ADO) April 2026: The Middle East Conflict Challenges Resilience in Asia and the Pacific”. The report raised India’s Gross Domestic Product (GDP) growth forecast for Financial Year 2026-27 (FY27) by 40 basis points (bps) to 6.9% from its previous estimate of 6.5% and also lower than 7.6% estimated for FY26.
In April 2026, Asian Development Bank (ADB) released its latest “Asian Development Outlook (ADO) April 2026: The Middle East Conflict Challenges Resilience in Asia and the Pacific”. The report raised India’s Gross Domestic Product (GDP) growth forecast for Financial Year 2026-27 (FY27) by 40 basis points (bps) to 6.9% from its previous estimate of 6.5% and also lower than 7.6% estimated for FY26.
- This growth projection is driven by higher consumption, higher investment, supportive policies and recent trade agreements.
Key Projections:
GDP for FY28: The report further projected that the Indian economy is expected to grow at 7.3% in FY28, supported by private consumption, revisions to government salaries and pensions, along with continued public investment and favourable external factors.
Inflation: The report estimated that India’s inflation to more than double from 2.1% (in FY26) to 4.5% (in FY27) due to a rebound in food prices, surge in global crude oil prices, currency weakness, among others.
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- However, Inflation is projected to ease to 4% in FY28.
Region-wise: The report estimated that economic growth in developing Asia and the Pacific region will ease to 5.1% in both Calendar Year 2026 (CY26) and Calendar Year (CY27) compared to 5.4% in CY25.
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