SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Finance
The Asian Development Bank (ADB) has lowered its forecast for India’s growth to 6.5% in FY26, down from 6.7% in April, citing US tariff hikes and global trade uncertainty. Developing Asia’s growth is also revised down to 4.8% in 2025 and 4.5% in 2026, reflecting weaker export demand and supply chain pressures.
Inflation across Asia is projected to ease to 1.7% in 2025, before rising modestly in 2026, while subregions such as Southeast Asia face sharper slowdowns (growth forecast cut to around 4.3% for 2025). Despite these headwinds, India remains among the fastest-growing large economies, supported by domestic demand, services exports, and infrastructure investment.
The revisions highlight the fragility of Asia’s growth amid shifting trade dynamics. For India, sustaining momentum will require boosting consumption and investment while diversifying trade partners and deepening service-led exports to offset tariff risks.
What is ADB? → The Asian Development Bank (ADB), founded in 1966 and headquartered in Manila, Philippines, is a regional multilateral development bank with 68 members (49 from Asia and the Pacific). Its mandate is to promote social and economic development through loans, grants, policy advice, and technical assistance. India is both a founding member and one of the largest borrowers, with ADB supporting infrastructure, energy, and social sector projects.
Follow the full news here: ADB Outlook – September 2025