ADB cuts India's FY27 GDP growth aim to 6.6% on higher energy prices

The Asian Development Bank has lowered India's FY27 GDP growth forecast to 6.6 percent. Elevated energy prices are impacting household purchasing power and squeezing real incomes. The lender also raised India's FY27 inflation forecast to 5.2 percent. South Asia's growth projection for 2026 was also reduced by 0.3 percentage points. Risks to the growth outlook remain tilted to the downside due to geopolitical tensions.