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What is the story about?
India’s economic growth is projected to ease to 6.9% in 2026 from 7.6% last year before rising to 7.3% in 2027, supported by resilient domestic consumption, according to the latest outlook by the Asian Development Bank (ADB).
In its Asian Development Outlook (ADO) April 2026, the ADB said growth across developing Asia and the Pacific is expected to slow to 5.1% in both 2026 and 2027, down from 5.4% last year, as geopolitical tensions and trade uncertainty weigh on the region.
The report flagged the ongoing conflict in West Asia as the biggest risk to the outlook, warning that a prolonged escalation could push up energy and food prices, disrupt shipping, and tighten financial conditions.
The forecasts were based on assumptions finalised on March 10 under an early stabilisation scenario, though more recent developments suggest a higher likelihood of persistent disruptions.
Also read: World Bank ups India's FY27 GDP growth projections to 6.6%
Despite the challenging global environment, the region is entering this phase from a position of strength, backed by robust domestic demand, stable labour markets, and increased public infrastructure spending, the ADB said.
ADB Chief Economist Albert Park said governments must maintain sound macroeconomic policies and extend targeted support to vulnerable households to sustain growth and manage inflation risks.
Regional inflation is projected to rise to 3.6% in 2026 and 3.4% in 2027, from 3.0% last year, driven in part by higher energy costs and potential disruptions to fertiliser markets, which could also exert pressure on global food prices.
Also read: Moody’s cuts India growth to 6% as West Asia conflict hits oil and LPG imports
Among major economies, growth in the People’s Republic of China is expected to slow to 4.6% in 2026 and 4.5% in 2027 from 5% last year, amid continued weakness in the property sector and softer export growth.
Pacific economies are likely to see the sharpest deceleration, with growth slowing to 3.4% in 2026 and 3.2% in 2027.
The ADB noted that while oil prices are expected to remain elevated in the near term, they could stabilise if geopolitical tensions ease, offering some relief to inflation pressures.
Also read: RBI MPC: India's central bank projects real GDP growth of 6.9% for FY27
In its Asian Development Outlook (ADO) April 2026, the ADB said growth across developing Asia and the Pacific is expected to slow to 5.1% in both 2026 and 2027, down from 5.4% last year, as geopolitical tensions and trade uncertainty weigh on the region.
The report flagged the ongoing conflict in West Asia as the biggest risk to the outlook, warning that a prolonged escalation could push up energy and food prices, disrupt shipping, and tighten financial conditions.
The forecasts were based on assumptions finalised on March 10 under an early stabilisation scenario, though more recent developments suggest a higher likelihood of persistent disruptions.
Also read: World Bank ups India's FY27 GDP growth projections to 6.6%
Despite the challenging global environment, the region is entering this phase from a position of strength, backed by robust domestic demand, stable labour markets, and increased public infrastructure spending, the ADB said.
ADB Chief Economist Albert Park said governments must maintain sound macroeconomic policies and extend targeted support to vulnerable households to sustain growth and manage inflation risks.
Regional inflation is projected to rise to 3.6% in 2026 and 3.4% in 2027, from 3.0% last year, driven in part by higher energy costs and potential disruptions to fertiliser markets, which could also exert pressure on global food prices.
Also read: Moody’s cuts India growth to 6% as West Asia conflict hits oil and LPG imports
Among major economies, growth in the People’s Republic of China is expected to slow to 4.6% in 2026 and 4.5% in 2027 from 5% last year, amid continued weakness in the property sector and softer export growth.
Pacific economies are likely to see the sharpest deceleration, with growth slowing to 3.4% in 2026 and 3.2% in 2027.
The ADB noted that while oil prices are expected to remain elevated in the near term, they could stabilise if geopolitical tensions ease, offering some relief to inflation pressures.
Also read: RBI MPC: India's central bank projects real GDP growth of 6.9% for FY27
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