New Delhi

India’s economy is projected to grow 6.6 per cent in FY27, with the country expected to remain among the world’s fastest-growing major economies despite global headwinds, supported by policy measures and strong services exports, the Asian Development Bank (ADB) has said.

The report said its revised FY27 growth projection remains higher than the International Monetary Fund’s latest FY27 growth estimate of 6.4 per cent.

“Growth will be supported by policy interventions to attract more foreign capital, as well as fuel tax cuts, targeted credit support, strong services exports, and public capital expenditure,” the ADB said.

The lender retained its FY28 growth forecast for India at 7.3 per cent, unchanged from its April outlook, saying the medium-term outlook is supported by improving global conditions and export competitiveness gained through trade agreements.

According to the report, elevated energy prices prompted the downward revision in the FY27 growth forecast as they erode real incomes and dampen consumer spending.

It cautioned that risks remain tilted to the downside due to heightened geopolitical tensions and weather-related weakness in agriculture.