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IMF reduced India's economic growth forecast, the effect of tariff war will be seen
The IMF has projected India's economic growth rate to be 6.2 percent for the financial year 2025-26. This is lower than the earlier estimate of 6.5 percent. The growth rate forecast has been reduced mainly due to trade tensions and global uncertainty. The growth scenario for India in 2025 is relatively more stable and the growth rate will be 6.2 percent.
The International Monetary Fund (IMF) has estimated India's economic growth rate at 6.2 percent in the financial year 2025-26. This is less than the previous forecast of 6.5 percent. The forecast of the growth rate has been lowered primarily because of trade tensions and worldwide uncertainty.
The International Monetary Organization stated in its World Economic Outlook that, 'For India, the 2025 growth situation is comparatively more stable and the rate of growth will be 6.2 percent. Private consumption, primarily rural, will provide the impetus to growth.'
According to the report, India's economic growth rate is estimated to be 6.2 percent in 2026-27, while it was 6.5 percent in 2024-25. This growth rate estimate is 0.3 percent less than the estimate of January 2025 and the reason for this is trade tension and global uncertainty.
