International Monetary Fund raises India growth forecast despite tariffs

The IMF raised its forecast for India’s fiscal year 2025-26 growth to 6.6 % from prior estimates, citing strong domestic momentum. It noted that despite U.S. tariffs on Indian goods, the carry-over from a robust first quarter is supporting growth. However, the IMF trimmed the projection for the following year, warning of export headwinds from elevated tariffs and global uncertainty. The report underscores India’s resilience but also flags underlying vulnerabilities in external sectors.