IMF Cuts Outlook for India Growth, Flags Global Risks

Wise, financial institutions will re-evaluate their credit supply to businesses, until they can assess the latter's exposure to the new environment,

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" he added. Earlier, the Economic Survey 2024-25 had said that despite global headwinds, India remains the fastest-growing major economy, with FY26 growth seen between 6.3% and 6.8%, supported by rural demand, services, and manufacturing.

"For India, the growth outlook is relatively more stable at 6.2% in 2025 (2025-26), supported by private consumption, particularly in rural areas, but this rate is 0.3 percentage points lower than that in the January 2025 World Economic Outlook update on account of higher levels of trade tensions and global uncertainty," the IMF said.