According to the latest World Economic Outlook report by the International Monetary Fund (IMF), India’s economy is projected to expand by 6.6% in 2025, making it one of the fastest-growing major economies. The upward revision reflects strong first-quarter performance, which largely offset the negative impact of higher U.S. tariffs on Indian exports. However, the IMF noted that growth remains 0.2 percentage points below its pre-tariff October 2024 forecast.
India is expected to outpace China, whose growth is forecast at 4.8%. The updated projections take into account the broader effects of U.S. tariffs on global trade and the subsequent agreements among nations amid growing uncertainty. The IMF expects India’s growth to ease slightly to 6.2% in 2026, as early-year momentum fades.
Globally, the IMF predicts 3.2% growth in 2025, tapering to 3.1% in 2026, with advanced economies growing at 1.6% and emerging markets at 4.2%. The U.S. is projected to grow 1.9%, while Spain leads advanced economies with 2.9%. The IMF emphasized rebuilding fiscal buffers, maintaining central bank independence, and accelerating structural reforms to strengthen global economic resilience.
