The Asian Development Bank (ADB) has raised its forecast for India’s GDP growth in FY2026–27 to 7%, up from its earlier estimate of 6.6%. The revision follows stronger-than-expected economic activity in the first quarter, when India’s GDP grew 7.8% year-on-year.
ADB attributed the improved outlook to strong investment demand, resilient consumption, and solid growth in manufacturing and services. Public investment and exports are also expected to support economic activity.
However, the outlook still faces risks from geopolitical tensions, elevated commodity prices and a strengthening El Niño, which could affect food prices and agricultural output.
In short: ADB’s upgrade reflects the strength of India’s recent economic performance, while external and weather-related risks remain important factors for the FY27 outlook.
