New Delhi – Albert Park, Chief Economist for the Asian Development Bank (ADB), has voiced a “somewhat optimistic” outlook for India's economic performance this fiscal year. Speaking in New Delhi, Park highlighted India's robust internal growth drivers, which he believes will enable the nation to achieve a good growth rate despite ongoing global challenges.
ADB Adjusts Growth Forecasts
The ADB recently revised its growth forecast for India downwards to 6.6% for the current fiscal year, a slight reduction from its earlier projection of 6.9%. However, the bank anticipates a rebound, with growth expected to reach 7.3% in FY28. This comes as the ADB also lowered its overall growth forecast for developing Asia and Pacific economies to 4.9% for 2026, down from 5.5% in 2025.
Navigating Global Headwinds and Domestic Risks
Park acknowledged several external factors creating uncertainty, including the crisis in West Asia and the implications of US tariffs. While US tariffs were a significant concern last year, their impact has lessened after being struck down by the US Supreme Court, though efforts to reinstate some are underway. Internally, a major risk factor identified by Park is the potential severity of the El Niño phenomenon this year, which could significantly affect climate and agriculture in India.
The Importance of Coordinated Capital for Development
Park was in New Delhi for the AVPN Global Conference 2026, where discussions focused on understanding the impact of global crises on the Asian region. Dhun Davar, Deputy CEO and Chief of Programmes at AVPN, emphasized the critical need for coordinated capital to address pressing issues like urbanization, climate change, and conflict-induced shocks. Davar noted that while capital availability is not the primary issue, a lack of coordination among policymakers, capital providers (private, commercial, and philanthropic), innovators, and project developers hinders effective solutions.
Asia faces a substantial financing requirement of $26 trillion through 2030 to sustain growth, eradicate poverty, and combat climate change, alongside an annual $1.5 trillion gap in Sustainable Development Goal (SDG) financing. The AVPN Conference theme, "A Blueprint for Action in Asia," underscored the urgency for collaborative strategies to meet these immense financial and developmental challenges.