The Asian Development Bank (ADB) has revised its growth forecast for India's economy, predicting a moderation to 6.9% in the current fiscal year ending March 31, 2027, down from 7.6% in the previous year. This estimate is an improvement from ADB's earlier projection of 6.5%. The ADB attributes this moderation to heightened global uncertainties, particularly stemming from the ongoing conflict in West Asia, which has led to higher energy prices and volatile trade conditions. Despite these challenges, ADB's country director for India, Mio Oka, emphasized that India's growth outlook remains resilient, supported by favorable fiscal and monetary policies, as well as regulatory reforms aimed at enhancing labor flexibility and integration into global value chains. Looking ahead, the ADB expects growth to accelerate to 7.3% in FY2027, driven by strong domestic demand and continued public investment. Inflation is projected to rise to 4.5% in FY2026 due to increased food and energy prices but is expected to moderate to 4% in FY2027. The current account deficit is anticipated to widen in FY2026 but should narrow in FY2027 as global energy markets stabilize and exports strengthen following recent trade agreements with key partners.