The Asian Development Bank (ADB) has raised its forecast for India’s GDP growth in FY2026–27 to 7%, up from its earlier projection of 6.6%, following stronger-than-expected economic growth in the first quarter.
India’s economy grew 7.8% year-on-year in the April–June quarter, supported by investment, manufacturing and resilient domestic demand. The stronger Q1 performance prompted ADB to revise its full-year outlook.
ADB also highlighted stronger investment and services exports as factors supporting India’s growth prospects. The upgrade comes despite continuing external risks, including geopolitical tensions, energy-price volatility and uncertainty surrounding global trade.
For FY2027–28, however, ADB lowered its growth forecast to 7.1% from 7.3%, indicating that the pace of expansion could moderate after the stronger current-year performance.
The latest forecast marks a significant change from ADB’s July outlook, when it had projected India’s FY2026–27 growth at 6.6%.
The revised outlook underscores the resilience of India’s domestic economy while highlighting the importance of investment, manufacturing and services exports in sustaining growth amid a challenging global environment.