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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China is the best friend of Pakistan. However, these days relationships between the two countries do not look normal. This is because Pakistan has decided to seek help from the Asian Development Bank (ADB) instead of China for the advancement of its old railway network. Pakistan has sought a $ 2 billion loan from ADB to improve the Karachi-Rohri railway section. This is the same ML-1 project, which was once considered the biggest and ambitious plan of the China-Pakistan Economic Corridor (CPEC).

China’s retreat from the project reveals Pakistan’s economic condition concerns. There is a lot of speculation about this, why have they pulled their hands from the Pakistani project in China. However, China has not suddenly decided to withdraw from the project. It is believed that Pakistan’s weak economic situation and problems of repaying debt could have caused trouble for China. China has already invested billions of dollars in Pakistan, where China is facing a serious problem in withdrawing money from Pakistan. Given the pressures of its economy, China is retreating from more risky investments. It is clear that when the financial situation is in danger, then all the weather companions can also retreat.

Importance of raco dik mine and ML-1
Balochistan’s raco, copper and gold mine can prove to be decisive for Pakistan’s economy. It is possible to get a large amount of minerals from the mine, but the old railway line is not so strong that the minerals can be transported on a large scale. For this, it is very important to upgrade the ML-1 railway line to the mine. For this reason, ADB has not only shown interest in the ML-1 project, but has also promised to help $ 410 million for the Reco Dik Khadan.

China, America and ADB
Increasing the role of ADB means that Pakistan no longer wants to depend only on China. According to sources, Pakistan had taken consent from China before this move so that the relationship would not be soured. Pakistani Army Chief Asim Munir said, “We will not sacrifice another friend for one friend.” At the same time, America is also showing interest in Pakistan’s Reco Dikk. This indicates that Pakistan is now moving towards multi -faceted foreign policy, which will include China, America and multilateral institution (ADB, IMF). In recent times, relations between Pakistan and America have been seen getting good, as US President Donald Trump has announced to create a Pakistani oil reserve.

CPEC’s future and Pakistan’s strategy
Between 2015-2019, several highways, power plants and ports were built under CPEC, but the development has slowed down since 2022. Chinese power producers have faced the problem of dues. China’s withdrawal from a big project like ML-1 further clarifies this lethargy. Now the arrival of ADB can be a lot of problem for CPEC.

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Bangladesh receives loan: After getting the help of $ 762 million (about Rs 6.360 crore) in May from the International Monetary Fund (IMF), now Bangladesh is going to get a loan again from two big banks of the world. The Asian Development Bank (ADB) and the World Bank have approved a $ 1.5 billion loan for Bangladesh. This will help in improving banking sector, dealing with climate change challenges and depleting of energy sector.

Both banks will get such a huge amount

According to the information received, ADB has approved a loan of $ 90 million for Bangladesh and World Bank of $ 64 million. Bangladesh is going to get this financial assistance at a time when the country is in dire need of foreign currency for foreign trade and its development projects. ADB Bank has informed that out of 90 million dollars, 50 crores will be done to improve the country’s banking system and strengthen it. The remaining 40 crores will be used to deal with climate change selections and promote development.

Many challenges ahead of Bangladesh’s banking system

Bangladesh’s banking system is currently dealing with many challenges, such as there is a huge lack of liquidity in the banking system, so the government does not have enough cash to fulfill its responsibilities. Bangladesh’s banking system also needs to create a strong regulatory framework so that problems like money laundering can be dealt with well.

Work is also to be done towards reducing cyber attack so that the data and money of the customers can be kept secure. The NPL problem in the banking system here is also very worrying, which has reached 74,570 million Taka in the first quarter of 2025.

Not only this, there is also difficulty in charging interest on the loan given to banks. Due to the help done by ADB, work will be done to increase cash in the banking sector, ensure compliance with international norms and to ensure affordable loans for micro, small and medium enterprises.

World Bank amount will help in this work

Apart from this, ADB bank will also give a loan of $ 400 million to Bangladesh to deal with the challenges of climate change. The $ 64 million from the World Bank will be used to reduce air pollution in the city and reduce the obstacles in gas supply.

According to media reports, due to the increasing demand for electricity in the country, the government led by Muhammad Yunus has converted the gas supply into power plants, which has deepened the gas crisis. With the amount received from the World Bank, these two projects will be worked on, which will promote economic development in Bangladesh, increase productivity and more and more people will get employment.

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Pakistan Funding: In view of the terrorist attack in Pahalgam in Jammu and Kashmir, the Indian government is preparing to talk with many big financial institutions in the world to review the funding given to Pakistan and reduce it potentially.

Quoting a senior government official, Business Today informed in its report that India will soon talk to the International Monetary Fund (IMF), World Bank and Asian Development Bank (ADB) and ask them to re -evaluate the financial assistance given to Pakistan.

India in concern about terrorism

The official said, “India is not taking the name of stopping terrorism across the border and in such a situation, India is worried about the continuous funding being received by Pakistan. This shows that after the recent incident in Pahalgam, India is trying to change its diplomatic efforts.

Tanghahal Pakistan is to get a loan of $ 7 billion in the 37 -month installment under the IMF’s bailout program to improve the revenue by improving revenue and reducing the fiscal deficit and bringing the economy here back on track.

In September 2024, Pakistan received approval from the International Monetary Fund for a loan of US $ 7 billion. Since 1958, Pakistan has spread its hands 24 times in front of the IMF.

Fund is not being used in these works

However, after Pakistan has repeatedly carried out the terrorist incidents, India can question its credibility and monitoring that Pakistan does not use this funding to shelter the terrorist, buy weapons and infiltrate the LOC.

According to reports, the Asian Development Bank has given financial assistance of $ 43.4 billion to Pakistan. The World Bank has also committed $ 49.7 billion for the ongoing 365 projects in Pakistan, including a big deal of $ 20 billion in January 2025.

The IMF is also associated with it under several programs to improve the Pakistani economy. It also includes an ongoing 7 billion dollar agreement. This help is important for Pakistan’s $ 350 billion economy.

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