India, Sept. 30 -- The Asian Development Bank (ADB) on Tuesday projected India's economy to grow at 6.5% in FY26, down from an earlier estimate of 7% in its April Asian Development Outlook.
The revision reflects concerns over steep US tariffs on Indian exports, which are expected to weigh on growth in the second half of the financial year.
India's GDP had posted a strong 7.8% expansion in Q1 FY26, supported by robust consumption and government spending. However, the ADB noted that additional US tariffs would dampen export prospects in FY26 and FY27, though resilient domestic demand and service exports are expected to cushion the impact.
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