IMF cuts India’s growth forecast

Global economic outlook worsens due to Trump tariffs

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The International Monetary Fund (IMF) Tuesday cut its economic growth forecast for India for the current fiscal year, citing increased trade tensions and global uncertainty.

The IMF lowered its forecast for the country to 6.2% from the 6.5% ithad forecast in January for the fiscal year that started April 1.

“For India, the growth outlook is relatively more stable at 6.2% in 2025 supported by private consumption, particularly in rural areas,” the IMF said in its World Economic Outlook report, where it slashed its forecasts for growth for most countries, citing the impact of U.S. tariffs.

For India, it said it was cutting its forecast due to "higher levels of trade tensions and global uncertainty.”

The outlooks for the US and global economies have significantly worsened in the wake of President Donald Trump’s tariffs and the uncertainty they have created, the IMF said.

‘The IMF said that the global economy will grow just 2.8 per cent this year, down from its forecast in January of 3.3 per cent. And in 2026, global growth will be 3 per cent, the fund predicts, also below its previous 3.3 per cent estimate.