The Asian Development Bank (ADB) has shared a fresh dose of optimism for India’s economic trajectory, sharply lifting its growth estimate for FY26 to 7.2 per cent from its earlier projection of 6.5 per cent. The multilateral lender attributes this upgrade primarily to a wave of domestic demand pushed by the recent tax reductions, giving the economy stronger momentum than previously expected. The revision also lends a lift to the broader region, with Asia’s 2025 outlook rising to 5.1 per cent from 4.8 per cent.
According to the ADB’s latest Asian Development Outlook (December 2025), “India’s 2025 growth projection is raised to 7.2 per cent, reflecting stronger second-quarter expansion as tax cuts supported consumption.”
The economy clocked an 8.2 per cent expansion in the July–September quarter, the fastest in six quarters and up from 7.8 per cent in the previous quarter. With both quarters combined, India has already achieved an impressive 8 per cent growth rate in the first half of the current fiscal year.
