- The International Monetary Fund (IMF) has upgraded India's FY26 GDP growth forecast to 6.6%, from 6.4%, amid global headwinds and US tariff pressures.
- Important Points
- New Growth Forecast
- FY26 GDP Growth: Upgraded to 6.6%
- Earlier Estimate: 6.4%
- Reason: Resilient domestic demand and strong Q1 performance
- Economic Performance
- Q1 FY26 GDP Growth: 7.8% – fastest in more than a year
- Driven by strong private consumption and domestic activity
- US Tariffs Impact
- US levied higher effective tariffs on Indian imports from Jul 2025
- IMF reports India's strong internal demand cushioned external shocks
- Policy Support
- GST reforms (lowered tax rates on goods/services) poised to:
- Drive domestic consumption
- Underpin growth in spite of softer global demand
- Global Context
- Institution India FY26 Growth Forecast
- IMF 6.6%
- World Bank 6.5% (increased from 6.3%)
- Emerging Markets Outlook (IMF):
- 2024: 4.3%
- 2025: 4.2%
- 2026: 4.0% (slowing trend)
- Statement
- IMF Managing Director Kristalina Georgieva underscored India's resilience in the face of global trade adversity and policy support for long-term growth.
- India is among the fastest-growing large economies, backed by solid domestic fundamentals.
Month: Current Affairs - October 18, 2025
Category: BANKING, FINANCE and BUSINESS