New Delhi, Dec. 10 -- The Asian Development Bank (ADB) has raised India's economic growth forecast for FY26 to 7.2 per cent from 6.5 per cent earlier, citing strong domestic consumption supported by recent tax cuts.

Strong Consumption, Manufacturing Drive Growth

In its Asian Development Outlook, December 2025, the multilateral agency said the upgrade reflects stronger-than-expected economic expansion, particularly in the second quarter.

India recorded GDP growth of 8.2 per cent in the July-September quarter of current fiscal, a six-quarter high, compared to 7.8 per cent in the previous quarter, resulting in 8 per cent growth in the first half of the current fiscal.

ADB attributed the momentum to robust manufacturing and services activ...