India\u2019s economy is set to grow 6.6% in FY2025\u201326, outpacing China and defying global slowdown fears, according to the International Monetary Fund\u2019s latest World Economic Outlook.<\/p>\n
The IMF\u2019s upgraded forecast signals renewed confidence in India\u2019s economic momentum, driven by strong domestic demand and a rebound in manufacturing and services. The 6.6% projection marks a significant upward revision from April and follows a solid 6.5% expansion in FY2024\u201325.<\/p>\n
\u201cThe upward revision primarily reflects the carryover effect of a strong start to FY26,\u201d the IMF said, noting that India\u2019s Q1 performance offset the drag from recent US tariff hikes on Indian goods.<\/p>\n
In contrast, China is expected to grow 4.8% next fiscal year, underscoring India\u2019s lead among large economies. The IMF attributes India\u2019s resilience to sustained consumer spending, rising private investment, and diversified trade strategies that blunted the impact of protectionist headwinds.<\/p>\n
Still, the Fund trimmed India\u2019s 2026 forecast to 6.2%, warning that early momentum may ease. The outlook aligns with the Indian government\u2019s target range of 6.3\u20136.8% growth for FY2025\u201326.<\/p>\n
Globally, the IMF projects a slowdown to 3.2% in 2025 and 3.1% in 2026, citing weaker trade and persistent geopolitical risks. Advanced economies are forecast to grow just 1.6%, while emerging markets average 4.2%. Spain leads developed nations with 2.9% growth, followed by the US at 1.9%.<\/p>\n
Despite initial fears, the IMF said the tariff shock was \u201cless severe than anticipated,\u201d crediting India\u2019s domestic strength and policy agility. \u201cThe effects of tariffs have been less severe than anticipated, thanks to resilient domestic demand and trade diversification,\u201d the report noted.<\/p>\n
The IMF urged governments to rebuild fiscal buffers, protect central bank independence, and intensify structural reforms. \u201cCredible, transparent, and sustainable policy actions\u201d are key to weathering ongoing global uncertainties, the report said.<\/p>\n","protected":false},"excerpt":{"rendered":"India\u2019s economy is set to grow 6.6% in FY2025\u201326, outpacing China and defying global slowdown fears, according to…\n","protected":false},"author":2,"featured_media":225118,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,95977,95975,95974,95976,95978,56,54,55],"class_list":["post-225117","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-global-slowdown-2026","tag-imf-forecast-india","tag-india-gdp-growth-2026","tag-india-vs-china-economy","tag-tariffs-on-indian-exports","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/225117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=225117"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/225117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/225118"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=225117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=225117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=225117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}