The International Monetary Fund (IMF) has raised its growth projection for India’s economy to 6.6% for FY2025, a slight uptick from its earlier estimate of 6.5%, underscoring the country’s resilience amid a volatile global environment.
According to the IMF, India’s strong 7.8% growth in the first quarter, supported by buoyant domestic demand, robust government capital expenditure, and improving private investment sentiment, has contributed to the upward revision.
With this forecast, India is expected to maintain its position as the world’s fastest-growing major economy, significantly outpacing China’s 4.8% growth projection for the same period.
At the global level, the IMF expects overall growth to remain steady at 3.2% in 2025, easing slightly to 3.1% in 2026, amid continued trade frictions, geopolitical tensions, and structural labour-market pressures.
The Fund, however, anticipates a marginal slowdown to 6.2% in FY2026, reflecting potential moderation as global financial conditions tighten and export demand softens.
In its latest assessment, the IMF urged economies to maintain fiscal prudence, uphold central bank independence, and pursue structural reforms to strengthen long-term growth prospects.
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