The Indian economy is projected to grow at 6.2% in 2025-26, slower than earlier estimated rate of 6.5%, due to escalated trade tensions and global uncertainty, the International Monetary Fund (IMF) said on Tuesday. "For India, the growth outlook is relatively more stable at 6.2% in 2025, supported by private consumption, particularly in rural areas," IMF said in its World Economic Outlook (WEO). India, which grew at 6.5% in 2024-25, is projected to grow at 6.2% in 2026-27, IMF said, adding that the growth rate is 0.3 percentage point lower than that in the January 2025 WEO update on "account of higher levels of trade tensions and global uncertainty".
Meanwhile, the International Monetary Fund said that the outlooks for the US and global economies have significantly worsened in the wake of President Donald Trump's tariffs and the uncertainty they have created. The IMF said that the global economy will grow just 2.8 per cent this year, down from its forecast in January of 3.3 per cent, according to its latest World Economic Outlook. And in 2026, global growth will be 3 per cent, the fund predicts, also below its previous 3.3 per cent estimate. US economic growth will come in at just 1.8 per cent this year, down sharply from its previous forecast of 2.7 per cent and a full percentage point below its 2024 expansion. The IMF doesn't expect a US recession, though it has raised its odds of one this year from 25 per cent to 37 per cent.