The International Monetary Fund (IMF) has projected that the Indian economy will grow 6.6% in 2025, maintaining its position as one of the world’s fastest-growing major economies.

The latest World Economic Outlook (WEO) report suggests that India’s domestic strength continues to offset the impact of rising US tariffs and global trade tensions.

India’s Growth Outlook

According to the IMF, the 6.6% forecast reflects strong performance in the first quarter of 2025, which helped neutralise much of the tariff-related impact on exports. However, the figure is 0.2 percentage points lower than the pre-tariff projection made in October 2024.

India’s economic expansion is expected to outpace China’s 4.8% growth, cementing its role as the primary driver of Asia’s economic momentum.

The Fund also

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