Washington, Oct 14: The International Monetary Fund (IMF) has revised India’s growth forecast upward to 6.6 per cent for 2025, marking an increase of 0.2 percentage points from its July World Economic Outlook (WEO) update. The IMF attributed this revision to India’s robust economic performance in the first quarter of 2025, which it said had more than offset the impact of increased US tariffs on Indian imports.
“In India, growth is projected to be 6.6 per cent in 2025…this upward revision reflects the carryover from a strong first quarter that offset the increase in the US effective tariff rate on imports from India since July,” the report stated.
However, the IMF slightly lowered its 2026 growth forecast for India to 6.2 per cent, down 0.2 percentage points from its previous projection. India’s economy expanded by a faster-than-expected 7.8 per cent during the April–July quarter, reinforcing its position as the world’s fastest-growing major economy.
On Monday, IMF Managing Director Kristalina Georgieva praised India’s “impressive” growth trajectory, commending the government for policy and tax reforms. “I’m very big on India because of the boldness with which they do things others say are impossible — for example, the success of digital identity,” she said.
The World Bank also recently raised its growth outlook for India to 6.5 per cent for 2025, up from 6.3 per cent earlier.
Globally, the IMF expects the world economy to expand by 3.2 per cent this year. IMF Chief Economist Pierre-Olivier Gourinchas said the global impact of US tariffs under President Trump has been smaller “than initially feared,” as trade remained open and supply chains adapted swiftly.
However, he cautioned that the “tariff shock” is dampening growth prospects, especially in the US, where the IMF has projected 2 per cent growth for 2025. (
