The Asian Development Bank (ADB) has projected India's GDP growth to remain strong at 6.9% for the fiscal year 2026-27, bolstered by robust domestic demand and improved financing conditions. This follows a growth rate of 7.6% in the previous fiscal year (2025-26). The ADB's Asian Development Outlook report highlights that while domestic factors such as tax cuts and steady public investment contribute positively, external risks, particularly from ongoing conflicts in West Asia, could pose challenges. These conflicts may lead to higher energy prices, disrupt trade, and reduce remittance inflows, all of which are crucial for India's economy. Inflation is expected to more than double from 2.1% to 4.5% in the current fiscal year, largely due to rebounds in food prices and rising global oil prices. However, inflation is projected to ease to 4% in the following fiscal year. The ADB also noted that growth could rise to 7.3% in FY2027-28, driven by domestic reforms and benefits from trade agreements with the European Union. Overall, while the Indian economy is set to grow, external pressures from geopolitical tensions remain a significant concern.