International Monetary Fund (IMF) has said that the impact of GST rate cuts will outweigh that of US tariffs on the Indian economy. It also stated that assessment of tariff impact will require time.

“India economy is projected to expand at 6.6 per cent this year (FY 2025-26), slightly up from 6.5 per cent in 2024 (FY 2024-25). The forecast has improved since April 2025 as strong Q2 growth and the goods and services tax (GST) reform are expected to outweigh the negative effects of higher US tariffs on demand for Indian goods,” IMF said in its regional economic outlook. However, the growth is expected to moderate to 6.2 per cent in 2026 (FY 2026-27).

The US imposed a 50 per cent tariff on India on August 27. In September, the GST Council recommended tweaking the four-slab GST structure

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