India's growth to ease but remain strong; ADB forecasts 6.9% in 2026, 7.3% in 2027

New Delhi [India], April 10 (ANI): The Asian Development Bank (ADB) has projected that India's economic growth will remain robust despite global uncertainties, even as rising geopolitical tensions and higher energy prices weigh on the broader regional outlook, according to its latest report.
India's GDP growth is forecast at 6.9 per cent in 2026 and 7.3 per cent in 2027, following an estimated 7.6 per cent growth in 2025, making it one of the fastest-growing major economies in the region.

The report noted that while growth in India is expected to ease slightly from last year's high base, it will continue to be supported by strong domestic consumption, ongoing structural reforms, and recent trade agreements.
It said, "Growth in India will ease but remain robust, bolstered by resilient consumption, recent trade agreements, and ongoing structural reforms."
ADB highlighted that India's economic momentum was particularly driven by buoyant private consumption, which pushed growth higher in the second half of 2025. Investments, especially in infrastructure and industry, also contributed to sustaining economic activity.
However, the report cautioned that external headwinds, particularly from the ongoing Middle East conflict, could pose risks. The conflict has pushed global oil prices sharply higher, increasing input costs for energy-importing economies like India and adding to inflationary pressures.
The report noted, "The region is highly exposed mainly through higher prices of energy and other commodities."
Inflation in India is projected at 4.5 per cent in 2026 and 4.0 per cent in 2027, reflecting the impact of rising food and energy prices, even as it remains relatively contained compared to some regional peers.
According to ADB, India and other South Asian economies are particularly vulnerable to higher food and energy inflation, though strong domestic demand is expected to provide a cushion against global shocks.
"Higher energy and transport costs would intensify inflationary pressures, erode real incomes," said the report.
At the regional level, growth in developing Asia and the Pacific is expected to moderate to 5.1 per cent in 2026 and 2027, amid geopolitical tensions, tighter financial conditions, and trade uncertainties.
The multilateral lender emphasised that while risks remain elevated, India's growth outlook continues to stand out due to its resilient domestic demand and reform momentum, positioning it as a key driver of regional economic expansion. (ANI)