ADB Lowers India's Growth Forecast

The Asian Development Bank (ADB) reduced India's FY27 growth forecast:

6.9% → 6.6%

Reason highlighted:
High energy prices squeezing household incomes.

FY28

Growth forecast retained at 7.3%.

Inflation

FY27 inflation forecast increased:

4.5% → 5.2%

Reasons:

• Higher global oil prices
• Weaker rupee
• Persistent food inflation.

FY28 inflation forecast: 4.0%.

Regional Forecast

• South Asia: 6.0%
• Developing Asia-Pacific: 4.9%

UPSC Mains

Growth vs inflation trade-off is important for monetary and fiscal policy.