Page 15 - Policy Economic Report - November 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

• The bank will work closely with the International Atomic Energy Agency (IAEA) and other
international authorities to help its developing member countries pursue international best
practices and comply with stringent standards on nuclear power.

• Another amendment allows the bank to finance projects that manage methane, one of the most
potent greenhouse gases, and curb routine gas flaring in existing oil and gas fields.

• Recognising the crucial long-term role of carbon capture, utilisation, and storage (CCUS), ADB has
been supporting CCUS technologies in power plants and other hard-to-abate sectors. A third
change extends this support to CCUS projects that use depleted gas and oil wells to store carbon
dioxide.

• A fourth amendment- new addition to the policy-recognises ADB's potential role in enabling the
development of diversified and responsible critical minerals-to-manufacturing value chains.

The changes are part of a mandatory, scheduled review of the existing energy policy, approved in October
2021, and were informed by extensive consultations with ADB's stakeholders.

In 2024, ADB committed about $3.8 billion to energy projects. The bank has also been helping to
strengthen policy and regulatory environments for stronger private sector investments to meet the
region's rapidly increasing energy demand.

5. Indian Economy

India’s economic growth

According to S&P Global Ratings, India's GDP is projected to grow by 6.5% in FY 2026 and 6.7% in FY 2027,
with risks evenly balanced. This growth is bolstered by strong domestic consumption, expected tax
reductions, and a supportive monetary policy stance.

The projection underscores India’s position as one of the world’s fastest-growing large economies, even
amid global uncertainties. The outlook reflects confidence in India’s policy framework and its ability to
sustain growth through internal drivers rather than heavy reliance on exports or external demand.

The Reserve Bank of India (RBI) has forecasted India’s GDP growth at 6.8% for the fiscal year, slightly
higher than S&P’s 6.5%. Both projections, however, indicate a healthy and stable growth trajectory amid
global economic challenges such as inflation, geopolitical instability, and trade friction.

S&P’s growth outlook reinforces the need for sustained focus on,

• Improving ease of doing business to attract both domestic and foreign investment
• Strengthening infrastructure, especially in logistics, energy, and digital connectivity
• Enhancing labour market flexibility to absorb rural and semi-skilled workforce
• Balancing fiscal discipline while supporting welfare schemes and public investment

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