According to the Chief Economist of the Asian Development Bank, Albert Park, net foreign investments in India will be promoted due to free trade deals, decreased taxes on imports, and improved business conditions. India experienced net foreign investments of $38.6 billion in 2021-22, followed by a reduction to $28 billion in 2023, and then to $10.2 billion in 2024.

Net foreign investments (foreign investment inflows less foreign investment outflows) are projected to reduce to around $1 billion in 2025. However, it increased to $3 billion during the April-December period of fiscal year 2026. Park said, "West Asia is slightly more vulnerable to conflict shocks than other parts of the world."

Praising India's reforms, including labor reforms and the GST, Park said India should continue this momentum. Regarding the outlook for crude oil prices, Park said, "With higher oil prices expected, our average for 2026 is $96 per barrel based on the new scenario.

It should remain at $80 per barrel in 2027. Therefore, we believe oil prices are likely to remain high for a long time." Regarding the impact of the ongoing West Asia crisis on India, Park said that it will reduce the country's GDP growth by 0.6 percent, bringing the effective growth rate to 6.3 percent.

Inflation will also increase significantly in the current fiscal year. The Asian Development Bank (ADB) in April projected India's growth rate to be 6.9 percent in the current fiscal year and to accelerate to 7.3 percent in fiscal 2028 on the back of strong domestic demand. The ADB also projected inflation at 4.5 percent in the current fiscal year.