ADB lifts India FY27 growth forecast to 7.3% on reforms, trade deals

The Asian Development Bank (ADB) has raised India's GDP growth forecast for FY2026-27 to 7.3%, up from 6.5%, citing strong domestic reforms and new trade agreements with the EU. The report highlights robust private consumption and public infrastructure spending, despite risks from geopolitical tensions and rising energy prices. For FY2025-26, growth is estimated at 6.9%. Inflation is projected to rise to 4.5% in FY26 before easing to 4.0% in FY27, influenced by government salary hikes and external pressures. The current account deficit is expected to widen modestly in FY26 but narrow in FY27 as oil prices stabilize.