The International Monetary Fund (IMF) has revised India’s growth projection upward to 6.6 per cent for 2025, reflecting the country’s strong economic momentum despite recent US tariff increases on Indian imports. The latest Global Economic Outlook report highlights that India’s robust performance in the first quarter of 2025 has more than offset the impact of trade restrictions.

The IMF noted that India’s April-July 2025 GDP growth of 7.8 per cent exceeded expectations, showcasing resilience in manufacturing, services, and domestic consumption. While India’s growth for 2026 is projected slightly lower at 6.2 per cent, the overall trajectory underscores the country’s continued economic strength.

IMF Managing Director Kristalina Georgieva praised India’s policy reforms, including the digital identity initiative, calling the country’s economic strategy “bold and transformative.” Similarly, IMF Chief Economist Pierre Olivier Gourinchas observed that while Trump’s tariffs posed challenges, their effect was smaller than anticipated due to trade deals, exemptions, and agile private sector responses, including supply chain adjustments.

The report also flagged a global economic growth forecast of 3.2 per cent for 2025, noting weaker growth in the United States amid inflation pressures and a slowing labor market. The IMF marginally revised US GDP growth from 1.9 to 2 per cent, reflecting the ongoing impact of negative supply shocks.

India’s upward revision aligns with recent estimates from the World Bank, which raised its 2025 growth forecast to 6.5 per cent, citing strong domestic demand and structural reforms. Experts say India’s resilient growth, despite international trade tensions, reinforces its position as one of the fastest-growing major economies globally.

With continued reforms, strategic investments, and adaptive trade practices, India is expected to maintain momentum, making it a key driver of global economic growth in the coming years.