<p>The International Monetary Fund (IMF) has raised India's growth forecast by 0.2 percentage points to 6.6 per cent for the 2025/26 fiscal year as the country's strong growth momentum is seen offsetting the impact of high US tariffs on Indian goods.</p><p>India's GDP grew at an unexpectedly higher pace of 7.8per cent in April-June thanks to strong private consumption, helping it remain the fastest growing major economy despite a cloudy export outlook due to steep 50 per cent tariffs imposed by US President Donald Trump.</p>.India on track to become 3rd largest economy, UK perfectly placed to be partner in this journey: Keir Starmer.<p>The IMF said in its World Economic Outlook report that the upward revision for India's 2025/26 growth was on a "carryover from a strong first quarter more than offsetting the increase in the US effective tariff rate on imports from India since July".</p><p>India's financial year runs from April to March.</p><p>However, the IMF lowered India's growth forecast by 0.2 percentage points to 6.2per cent for the next fiscal year, it said in the report released in Washington.</p><p>IMF's upgrade comes a week after the World Bank raised its India growth forecast for 2025/26 to 6.5per cent from 6.3 per cent, while trimming its projection for the next fiscal year by 20 basis points to 6.3% due to U.S. tariffs.</p><p>The IMF has projected growth of emerging market and developing economies to moderate from 4.3 per cent in 2024 to 4.2 per cent in 2025 and 4 per cent in 2026.</p><p>"Beyond China, emerging market and developing economies more broadly showed strength, sometimes because of particular domestic reasons, but recent signals point to a fragile outlook there as well," it said.</p><p>Higher US tariffs are curtailing external demand and rising trade policy uncertainty is weighing on investment in major export-led economies, the report said.</p>
<p>The International Monetary Fund (IMF) has raised India's growth forecast by 0.2 percentage points to 6.6 per cent for the 2025/26 fiscal year as the country's strong growth momentum is seen offsetting the impact of high US tariffs on Indian goods.</p><p>India's GDP grew at an unexpectedly higher pace of 7.8per cent in April-June thanks to strong private consumption, helping it remain the fastest growing major economy despite a cloudy export outlook due to steep 50 per cent tariffs imposed by US President Donald Trump.</p>.India on track to become 3rd largest economy, UK perfectly placed to be partner in this journey: Keir Starmer.<p>The IMF said in its World Economic Outlook report that the upward revision for India's 2025/26 growth was on a "carryover from a strong first quarter more than offsetting the increase in the US effective tariff rate on imports from India since July".</p><p>India's financial year runs from April to March.</p><p>However, the IMF lowered India's growth forecast by 0.2 percentage points to 6.2per cent for the next fiscal year, it said in the report released in Washington.</p><p>IMF's upgrade comes a week after the World Bank raised its India growth forecast for 2025/26 to 6.5per cent from 6.3 per cent, while trimming its projection for the next fiscal year by 20 basis points to 6.3% due to U.S. tariffs.</p><p>The IMF has projected growth of emerging market and developing economies to moderate from 4.3 per cent in 2024 to 4.2 per cent in 2025 and 4 per cent in 2026.</p><p>"Beyond China, emerging market and developing economies more broadly showed strength, sometimes because of particular domestic reasons, but recent signals point to a fragile outlook there as well," it said.</p><p>Higher US tariffs are curtailing external demand and rising trade policy uncertainty is weighing on investment in major export-led economies, the report said.</p>