The Asian Development Bank (ADB) has revised down India's GDP growth forecast for FY2026-27 to 6.6% from its earlier estimate of 6.9%, citing higher energy prices driven by escalating geopolitical tensions in the Middle East.
In its Asian Development Outlook (ADO) July 2026, the ADB said the surge in crude oil prices is expected to weigh on economic activity. However, it retained India's FY2027-28 growth projection at 7.3%.
Despite the downward revision, the ADB said India is expected to remain the fastest-growing major economy globally, supported by resilient domestic demand and continued economic momentum.