ADB Lowers India’s Growth

The Asian Development Bank (ADB) has recently revised India’s economic growth forecast, a key update for students preparing for current affairs sections in exams like SSC. According to the ADB forecast, ADB Lowers India’s Growth for FY26 to 6.5%, down from the earlier estimate of 6.7%.

The revision reflects rising global challenges, particularly elevated U.S. tariffs that are expected to affect around 60% of India’s exports to the U.S. This move is likely to dampen growth momentum in the second half of 2025-26 and beyond.

India’s Growth Forecast for FY26 and FY27

The ADB Lowers India’s Growth not only for FY26 but also for FY27. The bank’s Asian Development Outlook report for September 2025 revises India’s GDP projection for 2026-27 to 6.5%, down from the previous estimate of 6.8%. Despite these revisions, India’s domestic demand and infrastructural investments remain strong growth drivers.

For SSC aspirants, it is important to note that such revisions by the Asian Development Bank are closely watched by policymakers and economists as they indicate potential challenges and opportunities for the India economy.

Impact on Developing Asia

Alongside India, the ADB forecast has also been revised for Developing Asia.

The revised growth projections are

• 2025 forecast: 4.8% (down from 4.9% in April)

• 2026 forecast: 4.5% (down from 4.7%)

This indicates that global headwinds, such as rising US tariffs impact and trade barriers, are likely to slow the pace of expansion across the region. For students, this highlights the interconnectedness of the global economy and the ripple effects of international trade policies on domestic growth.

Reasons Behind the Revision

The ADB Lowers India’s Growth mainly due to the following factors:

1. US Tariffs Impact on India Exports – Elevated tariffs on major export sectors are expected to reduce demand, particularly in export-led industries.

2. Global Economic Slowdown – Slower growth in key trading partners can affect India’s external demand.

3. Rising Trade Barriers – Non-tariff barriers and trade restrictions pose additional challenges.

However, domestic factors such as infrastructure investment, structural reforms, and robust domestic demand supporting India’s economic growth continue to provide a cushion against these external shocks.

Strong Start but Rising Challenges

India started FY26 on a strong note, registering solid growth in the first quarter. However, the ADB economic outlook warns that rising trade barriers, especially US tariffs, will weigh on the growth of export-driven sectors in the coming quarters.

For SSC aspirants, this is a crucial point, as it demonstrates the balance between domestic demand and external trade pressures in shaping the Indian economy. The ADB lowering India’s growth projection highlights the impact of external factors on the country’s GDP growth.

Key Takeaways for SSC Students

1. India GDP Growth Revised by ADB – FY26 growth projected at 6.5%, down from 6.7%.

2. ADB Trims Growth Outlook for Developing Asia – Regional growth also affected due to global headwinds.

3. Impact of US Tariffs on India Exports – 60% of exports to the US may face higher tariffs.

4. Domestic Demand Supporting India’s Economic Growth – Infrastructure investment and reforms remain strong growth drivers.

5. ADB Lowers India’s Growth reflects challenges for export-led sectors and global trade uncertainties.

Students should remember that reports like the ADB India forecast provide insights not only into numbers but also into the structural dynamics affecting the India economy.

Final Thoughts

The Asian Development Bank (ADB) has lowered India’s growth forecast for FY26 to 6.5%, down from the earlier estimate of 6.7%, citing rising global challenges. Elevated U.S. tariffs on Indian exports, which could affect nearly 60% of shipments, are expected to slow growth in export-driven sectors. The ADB forecast also revises India’s GDP projection for 2026-27 to 6.5%, reflecting ongoing global headwinds.

Despite these challenges, domestic demand, infrastructure investment, and structural reforms continue to support the Indian economy, providing a buffer against external shocks. The bank also trimmed growth forecasts for Developing Asia, signaling a broader regional slowdown due to trade barriers and global economic pressures.

This adjustment highlights how international trade policies and global developments directly influence India’s GDP growth.