The International Monetary Fund (IMF) on Tuesday raised India’s growth forecast by 0.2 percentage points, projecting a 6.6 per cent expansion for the 2025-26 fiscal year, despite the threat of 50 per cent US tariffs. Growth is being supported by active consumer spending, which is helping the economy weather the impact.

India’s economy grew an impressive 7.8 per cent in April-June 2025, the fastest pace in five quarters, reinforcing its status as the world’s fastest-growing major economy, even amid uncertainties in the export sector. India’s financial year runs from April to March.

Growth outlook for FY27 cut amid tariff concerns

While the current fiscal outlook improved, the IMF trimmed India’s projected growth for FY2026-27 to 6.2 per cent, down 0.2 percentage points. The report highli

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