New York: India’s economy is estimated to grow at 6.6 per cent in 2025-26, the International Monetary Fund said, noting that the Goods and Services Tax reforms are likely to help cushion the country from the adverse impact of the 50 per cent tariffs imposed by the US.
“India’s economy has continued to perform well. Following the economic growth of 6.5 per cent in fiscal year 2024/25, real GDP expanded by 7.8 per cent in the first quarter of fiscal year 2025/26,” the IMF said in a statement after its Executive Board completed an annual assessment for India.
The IMF said that looking ahead, India’s ambition to become an advanced economy can be supported by advancing comprehensive structural reforms that enable higher potential growth. Despite external headwinds, growth is expected to remain robust, supported by favourable domestic conditions, it added.
“Under the baseline assumption of prolonged 50 per cent US tariffs, real GDP is projected to grow at 6.6 per cent in FY2025/26 before moderating to 6.2 per cent in FY2026/27,” the IMF said.