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ADB pegs India's growth at 6.5% for 2025-26: Key takeaways

Business

The Asian Development Bank just trimmed India's expected growth for 2025-26 to 6.5% (down from 6.7%), mainly because US baseline tariffs and global uncertainty are making exports and investments trickier.
Still, India's economy is growing faster than most big countries.

People in India are still spending

Even with global headwinds, people in India are still spending—especially in rural areas—which keeps the economy moving.
Services and agriculture are set to drive most of the growth, helped by above-normal monsoon rains boosting crops.

Growth expected to bounce back up next year

India's finances remain solid thanks to higher RBI payouts and steady progress on cutting deficits.
The central bank has made borrowing easier by lowering rates, and with inflation cooling off, experts expect growth to bounce back up to 6.7% in FY27 as things settle down globally.