# Multilateral lender predicts economic rebound driven by EU trade pact and a rise in government staff's income.

*business · news · 2026-04-10 · Business Standard*

## Key points

- ADB raised India's FY27 GDP growth forecast to 7.3%, up from 6.5% estimated in December.
- The upgrade is driven by an EU trade pact and expected government salary and pension hikes.
- ADB expects 125 basis points of RBI rate cuts in 2025 to stimulate credit and spending.
- India's current account deficit is projected to narrow in FY27 as oil prices stabilize and exports rise.
- Inflation is forecast to decline to 4.0% in FY27 despite salary-driven demand pressures.

**Countries:** India, European Union

[Read the full story on Business Standard](https://www.business-standard.com/economy/news/adb-lifts-india-fy27-growth-forecast-to-7-3-on-reforms-trade-deals-126041000469_1.html)

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