India’s economic outlook has received a significant boost, with the International Monetary Fund (IMF) now forecasting a 6.6% growth rate for the country in 2025. This upward adjustment of 0.2 percentage points, detailed in the IMF’s Global Economic Outlook, acknowledges India’s exceptional economic performance in early 2025. The report indicates that this domestic strength is effectively mitigating the effects of recent US tariff hikes on goods imported from India.
The IMF’s assessment notes that while growth is projected to slightly soften to 6.2% in 2026 (a 0.2 percentage point reduction from prior forecasts), the near-term picture is very encouraging. India’s economy had already surprised observers with a robust 7.8% expansion in the April-July quarter. This remarkable economic momentum has drawn praise from the IMF’s leadership, with Kristalina Georgieva commending India’s proactive approach to reforms and its successful implementation of ambitious projects like digital identity systems.
This positive assessment mirrors recent upgrades from the World Bank. On a broader scale, the IMF projects global economic growth to reach 3.2% for the current year. The Fund’s analysis suggests that the economic disruption from tariffs has been less impactful than anticipated, largely due to international cooperation and adaptive business strategies. Nevertheless, the IMF cautions that these ‘tariff shocks’ pose a continued risk to global economic expansion, including that of the United States, which has seen its own growth forecast adjusted.