The IMF also predicts that 'prolonged uncertainty, more protectionism, and labour supply shocks' could reduce growth.
The International Monetary Fund (IMF) has predicted that India will continue to be one of the fastest-growing ’emerging market and developing economies’ in 2025-26, growing at a rate of 6.6%, according to the World Economic Outlook (WEO) report.
This upward revision is attributed to strong economic performance in the first quarter, which has more than offset the effects of increased US tariffs on Indian goods.
India is set to outpace China, which is expected to grow at 4.8%. The IMF released its revised projections following the effects of US tariffs across various economies and the subsequent deals made between countries amid growing uncertainty.
However, the IMF has l

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