IMF Raises India's Growth Forecast Amid Global Economic Shifts

The IMF has revised India's GDP growth forecast for the current fiscal year to 6.6%, an improvement from 6.4%, crediting strong growth despite US tariffs. World Bank also raised its forecast to 6.5%. Global growth is anticipated to slow in the coming years, reflecting economic uncertainties and protectionism.

The International Monetary Fund (IMF) has revised its forecast for India's GDP growth for the current fiscal year, lifting it to 6.6% from a previous 6.4%. The upward revision is attributed to strong economic performance, which has managed to counterbalance the detrimental effects of increased US tariffs on Indian exports.

According to the IMF's latest World Economic Outlook, the forecast for 2026-27 has been adjusted downward by 20 basis points to 6.2%. The revised projections indicate a dynamic recovery phase for India, with a notable GDP growth of 7.8% recorded in April-June—its highest in five quarters before facing tariff challenges.

The World Bank has corroborated this optimistic outlook by adjusting its own forecast for India's growth to 6.5% from 6.3%. Meanwhile, the IMF anticipates global economic growth to decelerate in the coming years, amid challenges such as policy uncertainties and protectionism. Emerging economies are expected to experience moderated growth rates, underpinning a period of cautious optimism.

(With inputs from agencies.)