• This upward projection in India’s growth rate was due to the country’s stronger-than-expected  growth in the second quarter (Q2: July to September) of FY26 i.e. 8.2%, driven by the robust domestic consumption supported by Goods and Services Tax (GST) reforms
• However, it has retained India’s GDP growth projection for FY27 at 6.5%.

• What? Release of ADO December 2025
• Released by: ADB
• India’s GDP Forecast: 7.2% for FY26 (+70 bps) and 6.5% for FY27 (unchanged)
• India’s Inflation Projection: 2.6% (FY26) and 4.2% (FY27)
• Developing Asia Growth Forecast: 5.1% (CY25) and 4.6% (CY26)
• Inflation in Developing Asia: 1.6% (CY25) and 2.1% (CY26)

Key Projections:
India’s Inflation: The latest outlook has also revised down its projection for India’s inflation to 2.6% for FY26, from its previous estimate of 3.1%.

• The report cited that this downward forecast was due to GST reductions and food rice inflation for a second successive month, supported by strong agricultural output and favorable weather conditions.
• The report projected that inflation will increase to 4.2% (in FY27), nearer to the Reserve Bank of India (RBI) inflation target.

Developing Asia Growth Rate: The report has also upgraded its growth forecast for economies in developing Asia and the Pacific (developing Asia) for Calendar Year 2025 (CY25) by 0.3 percentage points or 30 bps, from 4.8% (projected in ADO September 2025) to 5.1%.

• Similarly, the report has raised the region’s growth outlook for CY26 by 0.1 percentage points or 10 bps i.e. to 4.6%

Inflation in Developing Asia: As per the report, inflation in developing Asia is projected to decline in CY25, from 1.7% (projected in September 2025 edition) to 1.6%, mainly reflecting lower than food inflation in India.

• However, the report has kept the region’s inflation forecast for CY26 unchanged i.e. at 2.1%.

About Asian Development Bank(ADB):
President- Masato Kanda (Japan)
Headquarters-Manila, the Philippines
Members Nations- 69 (49 members nations are from Asia-Pacific region)
Established- 1966