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IMF Lowers India's Growth Forecast Amid Trade Concerns

11/27/2025

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Summary

Story summary

The International Monetary Fund (IMF) revised India's next financial year's growth to 6.2%, down from 6.4%.
The IMF attributes the downgrade to ongoing high US tariffs, which could hurt exports, especially in labor-intensive sectors.
Despite the downgrade, India's growth remains strong thanks to structural reforms and digital infrastructure expansion.
The IMF projects current financial-year growth at 6.6%, aided by a robust April–June quarter.

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Story summary

The International Monetary Fund (IMF) revised India's next financial year's growth to 6.2%, down from 6.4%.
The IMF attributes the downgrade to ongoing high US tariffs, which could hurt exports, especially in labor-intensive sectors.
Despite the downgrade, India's growth remains strong thanks to structural reforms and digital infrastructure expansion.
The IMF projects current financial-year growth at 6.6%, aided by a robust April–June quarter.