{"id":240349,"date":"2025-10-25T18:00:16","date_gmt":"2025-10-25T18:00:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/240349\/"},"modified":"2025-10-25T18:00:16","modified_gmt":"2025-10-25T18:00:16","slug":"india-to-grow-6-6-in-2025-outpacing-china-at-4-8-says-imf-how-the-economy-is-defying-global-headwinds-economy","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/240349\/","title":{"rendered":"India To Grow 6.6% In 2025, Outpacing China At 4.8%, Says IMF \u2014 How The Economy Is Defying Global Headwinds | Economy"},"content":{"rendered":"

\"Indian\"google\"\/<\/a><\/p>\n

The International Monetary Fund (IMF) has projected that India\u2019s economy will expand by 6.6 per cent in 2025, according to its latest World Economic Outlook (WEO) report. The robust performance during the first quarter helped cushion the effects of escalating US tariffs on Indian exports. However, the IMF noted that this estimate is 0.2 percentage points lower than its pre-tariff projection made in October 2024.<\/p>\n

India\u2019s growth is forecast to surpass China\u2019s 4.8 per cent, reaffirming its position as the world\u2019s fastest-growing major economy. The updated IMF outlook considers the ripple effects of new trade policies and global negotiations taking place amid a climate of heightened uncertainty. Looking ahead, the IMF expects India\u2019s growth to moderate to 6.2 per cent in 2026, citing a potential slowdown in early-year momentum.<\/p>\n

Domestic Demand Keeps India\u2019s Forecast Steady<\/p>\n

Despite global headwinds, India\u2019s 2024\u201325 GDP growth stood at 6.5 per cent in real terms. Government sources quoted by ANI said that the official forecast for 2025\u201326 remains steady at 6.3\u20136.8 per cent, driven by resilient domestic consumption and steady investment flows.<\/p>\n

While the IMF acknowledged tariff-related challenges, it also highlighted that India\u2019s diversified economy and internal demand base have softened the blow. The IMF report emphasised the need for maintaining fiscal prudence and policy stability as key factors supporting growth.<\/p>\n

Global Growth Slows as Inflation Moderates<\/p>\n

Globally, the IMF expects world economic growth to reach 3.2 per cent in 2025, slightly easing to 3.1 per cent in 2026, with the impact of tariffs proving smaller than initially anticipated. Inflation is forecast to decline across most economies, though it remains above target levels in the United States.<\/p>\n

Advanced economies are projected to expand by an average of 1.6 per cent, while emerging markets could grow around 4.2 per cent. The IMF projects the US economy to rise by 1.9 per cent, down from 2.4 per cent in 2024, while Spain is expected to lead advanced economies with a 2.9 per cent growth rate.<\/p>\n

IMF Calls For Policy Stability And Fiscal Reform<\/p>\n

In its report, the IMF observed that \u201cthe global economy is adjusting to a landscape reshaped by new policy measures. Some extremes of higher tariffs were tempered, thanks to subsequent deals and resets. But the overall environment remains volatile, and temporary factors that supported activity in the first half of 2025, such as front-loading, are fading.\u201d<\/p>\n

The organisation also warned that \u201cprolonged uncertainty, more protectionism, and labour supply shocks\u201d could dampen future growth, while \u201cfiscal vulnerabilities, potential financial market corrections, and erosion of institutions could threaten stability.\u201d<\/p>\n

To maintain resilience, the IMF urged governments to restore confidence through \u201ccredible, transparent, and sustainable policies\u201d supported by trade diplomacy. It further advised that \u201cfiscal buffers should be rebuilt. Central bank independence should be preserved. Efforts on structural reforms should be redoubled.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"The International Monetary Fund (IMF) has projected that India\u2019s economy will expand by 6.6 per cent in 2025,…\n","protected":false},"author":2,"featured_media":240350,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[121100,64,63,99,164,143565,143566,143563,143568,28874,143567,143562,143558,143557,143561,143559,143564,15324,2020,3229,1055,143560,143569],"class_list":["post-240349","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-ani","tag-au","tag-australia","tag-business","tag-economy","tag-emerging-markets-growth","tag-fiscal-reforms-india","tag-global-economy-outlook","tag-global-growth-slows-as-inflation-moderatesglobally","tag-imf","tag-imf-calls","tag-imf-report-2025","tag-imf-world-economic-outlook","tag-india-gdp-growth-2025","tag-india-vs-china-growth","tag-indian-economy-forecast","tag-inflation-trends-2025","tag-international-monetary-fund","tag-spain","tag-times-now","tag-united-states","tag-us-tariffs-india","tag-world-economic-outlook"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/240349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=240349"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/240349\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/240350"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=240349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=240349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=240349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}