New Delhi, Oct 14
The International Monetary Fund (IMF) on Tuesday raised India's GDP growth forecast to 6.6 per cent for 2025-26 from 6.4 per cent earlier despite the punitive tariffs slapped by the US on the country’s exports.
In the April-June quarter of 2025-26, India grew at its fastest pace in at least a year, clocking a GDP growth rate of 7.8 per cent on the back of strong private consumption.
With the government rolling out sweeping GST reforms with tax rates reduced on consumer goods and services across the board, the domestic demand is expected to gain further momentum ahead. This is expected to offset the negative impact on external demand for Indian goods due to the US tariff hike.
However, she said it was too early to heave a big sigh of relief, because "global resilience has not yet been fully tested. And there are worrying signs the test may come".