By Admin 
ADB on India’s Economic Growth: The US high tariff has had a tremendous impact on the Indian economy. Due to this, the economic speed of the country is expected to slow down. The Asian Development Bank (ADB) said on Tuesday that despite a brilliant 7.8% rise in the first quarter of the financial year 2026, the Indian economy will move forward about 6.5% during the current financial year.
According to the report, due to the huge 50 percent high tariff on Indian goods by the US, the speed of the economy, which is jumping in the second quarter, may slow down. ADB released an estimate of India’s growth rate of 6.5 percent for 2025 (Financial Year 26) and 2026 (Financial Year 27).
India will remain economic speed
For this year and next year, ADB has reduced the growth rate of Asia and the Pacific region’s development economy from 0.1% to 0.2%. The main reason for this is uncertainty in the American tariff and global economy. According to ADB, India’s economy increased at a rate of 7.6% in the first half of 2025, which was mainly possible due to strong government capital expenses and domestic demand. The report said that industrial development has improved. Also, the good performance of manufacturing and construction sector compensated for a decline in mining and utility sector.
Manufacturing conditions remain strong in India and ASEAN economies. Along with this, service PMI in India is also strong, which is benefiting from the increasing demand for travel and entertainment services. It was also said in the report that rice prices will decrease due to favorable weather and record crops in India. However, high tariffs imposed by the US and increasing global trade uncertainty are likely to affect regional development.
High tariff impact on development
According to ADB, inflation will be reduced to 1.7% this year due to low food and low prices, while it can increase by 2.1% when food prices are normal next year. In August 2025, the Consumer Price Index (CPI) inflation in India was 2.07%, which is much lower than the 3.7% of the previous year. Food prices declined for the third consecutive month, a decrease of 0.7% on an annual basis, due to the low cost of vegetables, pulses and spices.
ADB Chief Economist Albert Park says that American tariffs are historically stable at high rates and global trade uncertainty remains at a high level. He further said, “Due to strong exports and domestic demand, the growth rate in the developing Asia and Pacific region has been strong this year, but the deteriorating external environment is affecting the future. It is very important to promote strong comprehensive economic management, openness and regional integration for governments in the new global trade environment.”
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