{"id":12213,"date":"2025-04-23T08:53:31","date_gmt":"2025-04-23T08:53:31","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=12213"},"modified":"2025-04-23T08:53:32","modified_gmt":"2025-04-23T08:53:32","slug":"india-gdp-growth-forecast","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/india-gdp-growth-forecast\/","title":{"rendered":"Amidst Tariff War, IMF Slashed India&#8217;s GDP Growth Forecast to 6.2%"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/india-gdp-growth-forecast\/#India_Vs_China\" >India Vs. China<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/india-gdp-growth-forecast\/#Around_the_World\" >Around the World<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/span> \u00bb <span><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\"><strong>Amidst Tariff War, IMF Slashed India&#8217;s GDP Growth Forecast to 6.2%<\/strong><\/span><\/span><\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Tuesday, 22 April 2025, the <strong>International Monetary Fund<\/strong> (IMF) announced the revised <strong>India GDP growth forecast <\/strong>of<strong> <\/strong>6.2%<strong> <\/strong>for FY26. It was earlier at 6.5%, but the recent geopolitical scenario, especially the ongoing tariff war, and other global uncertainties have weighed on the growth prospects of the economy.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is not only the FY26, but also for FY27, <strong>India\u2019s growth forecast<\/strong> by the IMF has been cut to 6.3% from the previous forecast of 6.5%. While the IMF reduced its forecast but it commented that the growth in India will be the highest amongst all the emerging economies around the world.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the World Economic Outlook, this calendar year 2025 will be quite stable for the country as domestic consumption is stable and growing, especially in rural areas.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-india-vs-china\"><span class=\"ez-toc-section\" id=\"India_Vs_China\"><\/span>India Vs. China<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With the new IMF forecast, comparisons are being drawn between two of the biggest nations, China and India. It is not just India for which the IMF cut the forecast; China\u2019s growth forecast has also been slashed to 4% from 4.6% for FY26.&nbsp; However, the irony is that while most of these are linked to the imposition of the US tariffs, the US itself witnessed a slash in its growth forecast. IMF reduced the US growth prospect to 1.8% from 2.7%, which was projected just 3 months back in January 2025.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">IMF also commented that China and the US will be the two most affected countries due to the new tariffs, and it is not India. That said, it also indicated that while these two nations will feel the heat initially, in the mid-term, the Asian and European economies will also be impacted.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Amidst all this sluggishness, Inflation may give you some hope as the IMF predicted the annual inflation for FY26 to drop to 4.2% and for FY27 it will further go down to 4.1%.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-around-the-world\"><span class=\"ez-toc-section\" id=\"Around_the_World\"><\/span>Around the World<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">While you might be worrying now with the downward revision of India\u2019s <strong>GDP growth<\/strong>, India is at one of the best places as of now. As per the IMF, the <strong>global GDP growth<\/strong> is about to slow down and thus it has revised the same downward to 2.8% for 2025, while earlier it was anticipated to be around 3.3%.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, the entire world is slowing down with the trade tensions freshly brewing every day. Though <strong>India\u2019s economic growth forecast<\/strong> is better compared to other emerging economies, investors still need to be cautious with the investment choices.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source: <a href=\"https:\/\/economictimes.indiatimes.com\/news\/economy\/indicators\/imf-cuts-indias-growth-forecast-to-6-2-in-fy26-amid-tariff-uncertainty\/articleshow\/120521974.cms\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" class=\"has-inline-color\">TheEconomicsTimes<\/mark><\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">______________________________________________________________________________________<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/shoonya.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0);color:#d79b30\" 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It was earlier at 6.5%, but the recent geopolitical scenario, especially the ongoing tariff war, and other global uncertainties have weighed on the growth prospects of the economy.&nbsp; It is not only the FY26, &hellip; <a href=\"https:\/\/shoonya.com\/blog\/india-gdp-growth-forecast\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Amidst Tariff War, IMF Slashed India&#8217;s GDP Growth Forecast to 6.2%&#8221;<\/span><\/a><\/p>\n","protected":false},"author":16,"featured_media":12214,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1082],"tags":[7359,7361,7356,5026,7360,7357,7358],"class_list":["post-12213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-gdp-growth-forecast","tag-global-gdp-growth","tag-india-gdp-growth-forecast","tag-india-gdp-growth-rate","tag-indias-economic-growth-forecast","tag-indias-growth-forecast","tag-international-monetary-fund"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India&#039;s GDP Growth Forecast Cut to 6.2% by IMF<\/title>\n<meta name=\"description\" content=\"India\u2019s GDP growth forecast revised downward by the 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