ADB lowers India’s FY26 growth forecast to 6.5% on US tariffs

The ADB has lowered India's FY26 growth forecast to 6.5% from 7% due to anticipated US tariffs on exports, despite strong Q1 growth. Domestic demand and service exports are expected to cushion this impact. The RBI significantly cut interest rates to 5.5% to support growth amidst lower inflation, while the fiscal deficit is projected to rise.