The International Monetary Fund (IMF) has raised India’s growth forecast by 0.2 percentage points to 6.6% for the 2025/26 fiscal year as the country’s strong growth momentum is seen offsetting the impact of high U.S. tariffs on Indian goods.

India’s GDP grew at an unexpectedly higher pace of 7.8% 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% tariffs imposed by U.S. President Donald Trump .

IMF cites strong first-quarter carryover as key driving force

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 U.S. effective tariff rate on imports f

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