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As on : 30-Sep-2025
Economy - Reports
30-Sep-2025     15:56

ADB expects India to expand at 6.5% in current fiscal

The Indian economy is expected to expand at 6.5 per cent in the current financial year as the impact of US tariffs on Indian exports will reduce prospects, particularly in the second half, Asian Development Bank or ADB said on Tuesday. The Asian Development Outlook (ADO) of the bank released in April, had projected a higher growth rate of 7 per cent, which was lowered to 6.5 per cent in the July. It noted that while GDP grew strongly in the first quarter (Q1) of FY26 at 7.8 per cent on improved consumption and government spending, additional US tariffs on Indian exports will reduce growth, particularly in the second half of FY26 and in FY27, though resilient domestic demand and service exports will cushion the impact.

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