ADB Cuts India’s FY27 Growth Forecast To 6.6%, Flags Rising Oil Prices As Key Risk

Summary

The Asian Development Bank has lowered India's economic growth forecast for the current fiscal year to 6.6 percent, down from the 6.9 percent projected earlier, due to persistently high oil prices. This revision reflects the impact of higher oil prices on household spending and private demand, with sustained energy inflation expected to dampen private demand. Despite this downward revision, India is still expected to remain one of the fastest growing major economies globally, supported by government measures and resilient services exports.