GDP growth at 6.5%: US tariffs to weigh down India's economic growth?

India's FY26 growth forecast was cut to 6.5% by ADB, down from 7%, primarily due to US tariffs impacting exports. While strong domestic demand and service exports will soften the blow, fiscal and current account deficits are set to widen. Inflation is lowered for FY26 but expected to rise in FY27.

Sep 30, 2025 1

GDP growth at 6.5%: US tariffs to weigh down India's economic growth?
India's FY26 growth forecast was cut to 6.5% by ADB, down from 7%, primarily due to US tariffs impacting exports. While strong domestic demand and service exports will soften the blow, fiscal and current account deficits are set to widen. Inflation is lowered for FY26 but expected to rise in FY27.
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