India to remain among fastest-growing major economies with 6.6 pc FY27 growth: Report
New Delhi, July 9
India's economy is projected to grow 6.6 per cent in FY27, with the country expected to remain among the world's fastest-growing major economies despite global headwinds, supported by policy measures and strong services exports, a report has said.
The report by the Asian Development Bank (ADB) highlighted that its revised FY27 growth projection remains higher than the International Monetary Fund's (IMF) latest FY27 growth estimate of 6.4 per cent.
"Growth will be supported by policy interventions to attract more foreign capital, as well as fuel tax cuts, targeted credit support, strong services exports, and public capital expenditure," the ADB said.
The lender also retained its FY28 growth forecast for India at 7.3 per cent, unchanged from its April outlook.
It said the medium-term outlook is supported by improving global conditions and export competitiveness gained through trade agreements with various partners.
According to the report, elevated energy prices prompted the downward revision in the FY27 growth forecast as they erode real incomes and dampen consumer spending.
It cautioned that risks to the outlook remain tilted to the downside due to heightened geopolitical tensions and weather-related weakness in agriculture.
The ADB also revised India's inflation forecast for FY27 to 5.2 per cent, while retaining its FY28 inflation forecast at 4 per cent.
For the broader region, the ADB lowered its growth forecast for South Asia to 6.0 per cent in 2026 from 6.3 per cent projected earlier, citing higher oil prices, rising freight costs and uncertainty over remittance flows.
Across developing Asia and the Pacific, the lender trimmed its 2026 growth forecast to 4.9 per cent from 5.1 per cent, saying the prolonged conflict in West Asia has disrupted energy supplies and supply chains, raising production costs and slowing economic activity.
Despite the near-term challenges, the ADB said India's growth outlook remains among the strongest globally, supported by ongoing reforms, public investment and resilient services exports.
— IANS
Reader Comments
The ADB report is encouraging! India's resilience despite global headwinds shows the strength of our economy. Policy measures like fuel tax cuts and public capex are clearly paying off. Proud moment for India 🇮🇳
Growth numbers are fine, but what about job creation? The real question is whether this growth translates into employment for our youth. High GDP with low employment is like a car without wheels. Need more focus on manufacturing and MSMEs.
Interesting report. The fact that India's FY27 growth is higher than IMF's estimate shows strong fundamentals. But the warning about geopolitical tensions and agriculture weakness is a real concern. Let's hope the monsoon plays nice this year.
Good to see services exports doing well! But we need to diversify our growth drivers. Relying too much on services leaves us vulnerable to global shocks. Time to boost manufacturing under 'Make in India' and create a more balanced economy. ✨
The ADB lowering South Asia growth forecast to 6% due to oil prices and freight costs is a stark reminder of how interconnected we are. India doing better than the region is commendable. But we must address energy security and invest in renewables to insulate ourselves.
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