6.4%: IMF raises India GDP forecast

NEW DELHI: IMF on Tuesday raised the global growth projection marginally, with the Indian economy too likely to expand more than what was estimated earlier. In its latest update, IMF said India is projected to grow 6.4% in 2025 and 2026, “reflecting a more benign external environment than assumed in the April reference forecast”. The estimate for this fiscal year, ending March 2026, is 0.2 percentage points higher than the earlier one.Global growth is projected at 3% (2.8% estimate earlier) for 2025 and 3.1% next year. “This reflects stronger-than-expected front-loading in anticipation of higher tariffs; lower average effective US tariff rates than announced in April; an improvement in financial conditions, including due to a weaker US dollar; and fiscal expansion in some major jurisdictions,” it said. For the US and China too, growth estimates have been revised upwards, 0.8 percentage points in China’s case to 4.8%.