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India's GDP growth rate is projected at 6.5 per cent in 2025 and 6.7 per cent in 2026 amid strong domestic demand, normal monsoon and monetary easing in the country, the Asian Development Bank (ADB) said on Wednesday. Inflation in the country is expected to be 3.8 per cent this year, followed by 4.0 per cent in 2026 - in line with Reserve Bank of India (RBI) projections, ADB said in a statement.
In India, a decline in food inflation also helps in controlling core inflation. With food inflation turning negative, Consumer Price Index (CPI) inflation fell to 2.1 per cent in June, the lowest in 77 months.
The Confederation of Indian Industry (CII) earlier this month said India's real GDP growth is projected in the range of 6.4-6.7 per cent this fiscal year, consolidating the country's position as the fastest-growing major economy in the world.
Meanwhile, the Asian Development Bank has lowered its growth forecasts for the economies of the developing Asia and Pacific region this year and next. The downgrades are driven by expectations of reduced exports amid higher US tariffs and global trade uncertainty, as well as weaker domestic demand.
The ADB estimates the region's economies will grow by 4.7 per cent this year, 0.2 percentage points lower than the estimate released in April. The forecast for next year has been lowered to 4.6 per cent from 4.7 per cent, according to the Asian Development Outlook (ADO) July 2025.
Escalation in US tariffs and trade tensions could further weigh on growth prospects in Asia and the Pacific.
Other risks include conflict and geopolitical tensions, which could disrupt global supply chains and raise energy prices, and the People's Republic of China's (PRC) property market could deteriorate more than expected.
“Asia and the Pacific have weathered an increasingly challenging external environment this year. But the economic outlook has weakened amid intensifying risks and global uncertainty,” said ADB Chief Economist Albert Park.
“Economies in the region should continue strengthening their fundamentals and promoting open trade and regional integration to support investment, employment, and growth,” Part mentioned.
Growth forecasts for China, the region's largest economy, are maintained at 4.7 per cent this year and 4.3 per cent next year. Southeast Asian economies will be hit hardest by deteriorating trade conditions and uncertainty.
The ADB now estimates that the subregion’s economies will grow by 4.2 per cent this year and 4.3 per cent next year, about half a percentage point lower than its April forecasts for each year.
With the IANS
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