{"id":20891,"date":"2025-10-25T22:37:28","date_gmt":"2025-10-25T22:37:28","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/10\/25\/imf-projects-indian-economy-to-grow-at-6-6-in-fy-2025-despite-dim-prospects-for-global-growth-economy-news\/"},"modified":"2025-10-25T22:37:28","modified_gmt":"2025-10-25T22:37:28","slug":"imf-projects-indian-economy-to-grow-at-6-6-in-fy-2025-despite-dim-prospects-for-global-growth-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/10\/25\/imf-projects-indian-economy-to-grow-at-6-6-in-fy-2025-despite-dim-prospects-for-global-growth-economy-news\/","title":{"rendered":"IMF Projects Indian Economy To Grow At 6.6% In FY 2025 Despite Dim Prospects For Global Growth | Economy News"},"content":{"rendered":"


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Despite India’s rapid growth, the IMF predicts global growth will slow from 3.3% in 2024 to 3.2% in 2026.<\/h2>\n
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IMF has revised India’s growth projection for FY25-26 after US tariffs. <\/p>\n<\/figure>\n

The International Monetary Fund (IMF) has predicted that India will continue to be one of the fastest-growing \u2019emerging market and developing economies\u2019 in 2025-26, growing at a rate of 6.6%, according to the World Economic Outlook (WEO) report.<\/p>\n

This upward revision is attributed to strong economic performance in the first quarter, which has more than offset the effects of increased US tariffs on Indian goods.<\/p>\n

India is set to outpace China, which is expected to grow at 4.8%. The IMF released its revised projections following the effects of US tariffs across various economies and the subsequent deals made between countries amid growing uncertainty.<\/p>\n

However, the IMF has lowered its 2026 projection to 6.2%, citing a potential fading of first-quarter momentum.<\/p>\n

With the effects of tariffs lower than expected, the IMF projects global growth at 3.2% in 2025, while slowing to 3.1% in the following year. These projections, however, are still lower than the pre-policy-shift forecasts.<\/p>\n

Inflation is projected to continue to decline globally, though with variation across countries: above target in the United States\u2013with risks tilted to the upside\u2013and subdued elsewhere, the IMF\u2019s report mentioned.<\/p>\n

Advanced economies are expected to grow at an average rate of 1.6%, whereas emerging economies are set to grow at 4.2%, with the 2026 projection predicting a 0.2% slowdown.<\/p>\n

IMF also predicts that Spain is going to be the fastest-growing \u2018advanced economy\u2019, growing at a rate of 2.9%. The United States is also set to grow at 1.9%, down from 2.4% in 2024.<\/p>\n

Meanwhile, the forecast predicts Brazil\u2019s growth at 2.4%, Canada at 1.2%, Japan at 1.1% while ASEAN-5 countries<\/p>\n

The October WEO IMF predictions are up relative to their April forecasts, but continue to be on a downward revision relative to the pre-tariff policies.<\/p>\n

Despite India\u2019s rapid growth, the IMF predicts global growth will slow from 3.3% in 2024 to 3.2% in 2026.<\/p>\n

The IMF also predicts that \u2018prolonged uncertainty, more protectionism, and labour supply shocks\u2019 could reduce growth. While \u201cfiscal vulnerabilities, potential financial market corrections, and erosion of institutions could threaten stability.”<\/p>\n

The IMF urged policymakers to restore confidence through credible, transparent, and sustainable policies, with trade diplomacy to be paired with macroeconomic adjustment.<\/p>\n

\u201cFiscal buffers should be rebuilt. Central bank independence should be preserved. Efforts on structural reforms should be redoubled”, the IMF said.<\/p>\n

Earlier in October, the IMF announced its revisions to forecasts, projecting an upward growth to 6.6%. That revision was largely due to India\u2019s strong growth momentum in the first quarter of FY26, when the economy grew at 7.8%.<\/p>\n

The upward revision is mainly due to the carryover effect from a strong first quarter, rather than any offsetting effect from recent US tariffs.<\/p>\n

In 2024-25, the Indian economy grew by 6.5% in real terms. The government has maintained the GDP forecast at 6.3-6.8% for 2025-26, even amid US tariff uncertainty, affirming confidence in the country\u2019s robust domestic consumption.<\/p>\n

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October 25, 2025, 09:02 IST<\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> economy<\/a> IMF Projects Indian Economy To Grow At 6.6% In FY 2025 Despite Dim Prospects For Global Growth<\/span><\/div>\n
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Last Updated:October 25, 2025, 10:05 IST Despite India’s rapid growth, the IMF predicts global growth will slow from 3.3% in 2024 to 3.2% in 2026. IMF has revised India’s growth projection for FY25-26 after US tariffs. The International Monetary Fund (IMF) has predicted that India will continue to be one of the fastest-growing \u2019emerging market…<\/p>\n","protected":false},"author":1,"featured_media":20892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-20891","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=20891"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/20891\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/20892"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=20891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=20891"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=20891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}