IMF lifts India growth to 6.6 percent
The International Monetary Fund raised its India growth forecast to 6.6 percent for the current fiscal year, up from an earlier estimate of 6.5 percent. Strong second-quarter performance and goods and services tax reforms will offset the negative impact of American trade tariffs, according to the fund’s Asia-Pacific economic outlook released on Friday. The projection makes India the fastest-growing major developing economy, though expansion is expected to slow to 6.2 percent next year.
Asian economies showed resilience through the first half of 2025 despite external pressures, but rising protectionism threatens export demand. China’s growth rate is forecast to decline to 4.8 percent this year from 5 percent previously. The fund recommends regional trade integration and productivity improvements to counter tariff headwinds. Asia will account for approximately 60 percent of global economic growth through 2026, while inflation remains subdued across emerging markets.
