Current Affairs - Economy - Discussion

The Asian Development Bank (ADB) has lowered India’s GDP growth forecast for FY26 to 6.5%, down from its earlier estimate of 6.7%. This revision reflects the impact of elevated U.S. tariffs, which are expected to affect around 60% of India’s exports to the U.S., slowing growth momentum in the second half of 2025-26. Despite strong domestic demand, infrastructure investment, and ongoing structural reforms, global trade challenges are likely to dampen India’s expansion. The ADB also projected a similar 6.5% growth rate for FY27, highlighting continued caution amid external headwinds for the Indian economy.