India has got two big shocks in a single day. In fact, this shock is about the economy. India Ratings and Research and Asian Development Bank has reduced GDP growth for the current financial year under India’s Economic Outlook. Both can be estimated at 6.3 percent and 6.5 percent respectively in India’s growth in the current financial year. This can be seen due to Trump’s tariff and geo political tension. At the same time, both of them also said that even after this cut, India will remain the fastest economy in the world.
In fact, both these reports can be considered a major setback for that target of India, under which by 2047, India is developed and made an economy of 30 trillion dollars. On the other hand, trade deal of India and America could not be done. It is expected that if the trade between India and America is not co -withdrawn before August 1, then American Presidents can also issue tariff letters against India. Due to which the economy of the country can suffer even more damage. The EU has already banned Russian oil coming from India. Let us also tell you what kind of report has been presented by India Ratings and ADB.
India ratings shocked
India Ratings and Research reduced India’s growth estimate for the current financial year 2025-26 to 6.3 percent on Wednesday. The agency cited uncertainty and weak investment environment over the US fee. India Ratings and Research has estimated India’s gross domestic product (GDP) growth to be 6.3 percent for FY 2025-26 in its mid-year economic scenario, lower than its December 6.6 percent estimate.
Its Chief Economist and Public Finance Head Devendra Kumar Pant said that the major adverse conditions include unilateral fee increase on all countries of America, uncertain global outlook and weak investment environment. At the same time, favorable conditions include monetary spontaneity, a decline in inflation and more than normal rainfall in 2025. Indian economy increased at a rate of 6.5 percent in 2024-25 (April 2024 to March 2025).
ADB has something like this
The Asian Development Bank (ADB) on Wednesday reduced India’s growth estimate from 6.7 percent to 6.5 percent for the financial year 2025-26 amid trade uncertainty and concerns about high fees. Despite a decline in the Asian Development Outlook (ADO) in the Asian Development Outlook (ADO), India remains one of the fastest growing major economies in the world.
According to the Asian Development Outlook of July, this amendment has been mainly due to the impact of the US fee and the policy uncertainty associated with it. In addition to the effects of low global growth and additional US fees on Indian exports, increased policy uncertainty can affect investment flow.
Outlook said that despite this, economic activities remain strong and the improvement in rural demand is expected to increase a strong increase in domestic consumption. Service and agriculture sector growth is expected to be the major driver and the forecast of more monsoon rainfall than normal will give support to the agricultural sector. The report estimates the growth rate of 6.7 percent for FY 2026-27. The initial expectations of softening of crude oil prices can also support economic activities in FY 2025-26 and FY 2026-27.
The economic review has estimated the growth rate of GDP (GDP) to be between 6.3 percent and 6.8 percent for the financial year 2025-26, while the Reserve Bank of India (RBI) has reduced its growth estimate for the current financial year from 6.7 percent to 6.5 percent.