The Asian Development Bank (ADB) has projected India’s GDP growth to remain robust at 6.9% in the current financial year, with an acceleration to 7.3% in the next fiscal, supported by strong domestic demand, easing financing conditions, and lower US tariffs on Indian goods.

In its Asian Development Outlook report, the ADB cautioned that a prolonged conflict in the Middle East could pose risks to India’s macroeconomic stability.

The report highlighted potential challenges including elevated energy prices, disruptions in trade flows, and softer remittance inflows, given the region’s significance to India’s external sector.