ADB Cuts India’s Growth Forecast To 6.5% On US Tariffs

03 Oct 2025 CW Team

The Asian Development Bank (ADB) has lowered India’s growth forecast for the current financial year to 6.5 per cent, down from 6.7 per cent projected in April, citing the impact of steep 50 per cent tariffs imposed by the United States on imports from India. The forecast for 2026-27 has also been reduced to 6.5 per cent from 6.8 per cent.

In its Asian Development Outlook September 2025 report released on 30 September, ADB also revised growth projections for developing Asia, cutting the 2025 forecast to 4.8 per cent from 4.9 per cent and the 2026 forecast to 4.5 per cent from 4.7 per cent.

“The revisions reflect downgrades for India, hit by steep tariff hikes, and Southeast Asia, affected by a weaker and more uncertain global environment,” the report said. India faces the highest tariff hikes among developing Asian economies, prompting a downgrade in its outlook.

Despite strong first-quarter growth supported by consumption and public investment, ADB warned that higher US tariffs—impacting about 60 per cent of Indian exports to the US—will weigh on growth from the second half of 2025-26 and into 2026-27.

Merchandise exports are expected to rise only modestly, constrained by tariffs on key sectors such as textiles, garments, jewellery, shrimp, and chemicals. By contrast, services exports are projected to remain robust and a critical driver of growth. Investment growth is also expected to be weaker, with corporate investment dampened by global trade uncertainty.

On the domestic front, consumption is likely to outpace earlier estimates, supported by lower food prices and cuts in consumption and income taxes. Inflation for 2025-26 has been revised down to 3.1 per cent, driven by subdued oil prices and a faster-than-expected fall in food prices from higher agricultural output. However, food prices are expected to normalise in 2026-27, pushing inflation back up to 4.2 per cent.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..