ADB raises India's FY27 growth forecast to 7% on investments
The Asian Development Bank (ADB) just raised India's growth forecast for FY27 to 7% (up from 6.6%), thanks to strong investment and booming services like finance and real estate.
India kicked off FY27 with a solid 7.8% GDP jump in the first quarter, with manufacturing also seeing healthy gains.
ADB expects India FY27 inflation 5%
ADB now expects inflation in FY27 to ease to 5%, citing lower-than-expected pass-through of elevated global energy prices to retail consumers, as the government used tax cuts and other buffers to absorb part of the shock.
For FY28, growth is pegged a bit lower at 7.1% (down from 7.3%) as worries about global tensions and unpredictable weather (like El Nino messing with monsoons) could hit agriculture and slow things down a bit.
Despite these risks, ADB is hopeful for stable prices and a rebound in farming next year.