- It projected India’s GDP growth at 6.5% for both FY26 and FY27, revising down earlier estimates.
- The downgrade was due to steep US tariffs on Indian exports and global trade uncertainty.
- Domestic demand, services exports, and a good monsoon are expected to cushion growth.
- Inflation is forecast at 3.1% in FY26 and 4.2% in FY27.
- The fiscal deficit may overshoot the 4.4% target but remain below FY25’s 4.7%.
Question:
Q.1 . According to the Asian Development Outlook (ADO) September 2025, what is the projected GDP growth rate of India for FY26 and FY27?a) 6.8% and 7.0%
b) 6.5% and 6.5%
c) 6.3% and 6.7%
d) 7.2% and 6.9%
Answer: b) The ADB downgraded India’s growth forecast to 6.5% for both FY26 and FY27 from its earlier, higher estimate due to US tariffs and global trade uncertainty.
