THE International Monetary Fund (IMF) has predicted that India will continue to be one of the fastest-growing ’emerging market and developing economies’ in 2025-26, growing at a rate of 6.6 per cent, according to the World Economic Outlook (WEO) report.
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. 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.
However, the IMF has lowered its 2026 projection to 6.2 per cent, citing a potential fading of first-quarter momentum. With the effects of tariffs lower than expected, the IMF projects global growth at 3.2 per cent in 2025, while slowing to 3.1 per cent in the following year. These projections, however, are still lower than the pre-policy-shift forecasts.
ANI
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