The Asian Development Bank (ADB) has released its Asian Development Outlook for April 2026, projecting India's GDP growth to moderate to 6.9% in 2026, down from 7.6% in 2025. The ADB attributes this slowdown to a challenging external environment, primarily influenced by geopolitical tensions and trade uncertainties, even as domestic consumption remains robust. The report also indicates that inflation in India is expected to rise to 3.6% in 2026, driven by higher energy costs and potential disruptions in fertilizer supplies, before slightly easing to 3.4% in 2027. The ADB highlighted the ongoing conflict in West Asia as a significant risk that could further impact energy and food prices, disrupt shipping routes, and tighten global financial conditions. Despite these challenges, the region is entering this phase from a position of relative strength, supported by firm domestic demand and increased public infrastructure spending. ADB Chief Economist Albert Park emphasized the importance of maintaining sound macroeconomic policies and extending targeted support to vulnerable households to sustain growth and manage inflation risks.