Indian Economy Expected to Grow 6.5% in FY26 Amid US Tariffs' Impact on Exports, Says ADB

The GDP is expected to witness a strong growth in the first quarter (Q1) of FY26 at 7.8 per cent on improved consumption and government spending. However, additional US tariffs on Indian exports will reduce growth, particularly in the second half of FY26 and in FY27, though resilient domestic demand and service exports is expected to cushion the impact, ADO September 2025 stated.