New Delhi, Sept 24:
The Asian Development Bank (ADB) on Wednesday raised its forecast for India’s economic growth in the current fiscal to 7 per cent, up from 6.6 per cent projected in July, citing stronger-than-expected economic performance in the first quarter despite supply-side disruptions caused by West Asia crisis.
In its Asian Development Outlook (ADO) September 2026, the multilateral lender said, “The revision reflects India’s stronger-than-expected economic performance, with GDP expanding by 7.8 per cent year-on-year in the first quarter of FY2026 (2026-27), supported by robust investment demand, resilient consumption, and solid growth in manufacturing and service sectors.”
The economy has also benefited from lower-than-expected supply disruptions, sustained capital inflows, and limited pass-through of higher input cost to consumer prices, which helped cushion the impact of the conflict in the Middle East, the report said.
The ADB’s latest projection marks an upward revision of 0.4 percentage points from its July forecast of 6.6 per cent for FY2027.
Despite supply disruptions and high commodity prices, India’s economy continues to demonstrate resilience, supported by strong infrastructure spending and growth-supporting fiscal and monetary policies, said ADB Country Director for India Mio Oka.
“Continued strength in the services sector, including AI-related investments, alongside improvements in agricultural productivity and steady manufacturing growth, will help sustain the growth momentum,” she said.