ADB Lifts India FY26 Growth Forecast to 7.2%
Why in the news
The Asian Development Bank upgraded India’s FY26 outlook, citing firm household spending helped by tax relief.
Key facts
- FY26: 7.2%, up 70 bps; FY27 unchanged at 6.5%.
- Drivers: private consumption and moderate government spending.
- FY26 inflation seen at 2.6% (earlier 3.1%); causes: GST cuts, cheaper food, good harvest, weather.
- IMF praised growth momentum and fiscal discipline.
| Agency (highest revision first) | Revised FY26 forecast, % | Earlier, % |
|---|---|---|
| Kotak Mahindra | 7.8 | 6.5 |
| SBI Research | 7.6 | 6.3 |
| IDFC Bank | 7.6 | 6.8 |
| CareEdge | 7.5 | 6.9 |
| Fitch | 7.4 | 6.9 |
| ADB | 7.2 | 6.5 |
| Crisil | 7.0 | 6.5 |