ADB cuts India FY27 growth forecast to 6.6% on higher energy costs

The Asian Development Bank has lowered India's FY27 growth forecast to 6.6 percent. Higher oil prices and transportation costs are impacting consumer sentiment and private demand. The ADB retained its FY28 growth forecast at 7.3 percent, expecting policy support. South Asia's growth projection for 2026 was also lowered by 0.3 percentage points. India's FY26 inflation forecast was raised to 5.2 percent due to oil and food prices.