The Asian Development Bank on Wednesday upped India’s GDP forecast to by 0.7 percentage points to 7.2% in FY26, reflecting stronger third-quarter expansion as tax cuts supported consumption.

“The 2026 forecast stays unchanged at 6.5%,” said the ADB in its Asian Development Outlook, December 2025, which was released on Wednesday. Advertisement

ADB joins some other agencies that have pegged India’s GDP growth estimates near 7.5% following the rate rationalisation under the goods and services tax (GST), which is expected to boost consumption, as well as the income tax cuts announced in the Union Budget 2025-26.

The finance ministry expects the economy to grow at over 7% this fiscal, while the Reserve Bank of India has pegged real GDP growth for FY26 at 7.3%.

The GST rate cuts that came i

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