"IMF Projects India's GDP Growth at 6.5% for FY26 and FY27."
Economy Business
On January 19, 2025, the International Monetary Fund (IMF) maintained its forecast for India’s economic growth at 6.5% for both Financial Year 2025-26 (FY26) and FY27.
- The IMF's World Economic Outlook report highlighted that India’s growth is projected to remain robust at 6.5%, consistent with its earlier predictions from October 2024.
- India's Gross Domestic Product (GDP) growth decelerated to 5.4% in the second quarter of Financial Year 2025 (FY25), down from 6.7% in the same quarter of FY24. This slowdown is mainly attributed to a significant decline in industrial activity, which has affected overall economic performance.
- India’s GDP growth for Financial Year 2024 (FY24) stood at 8.4%, showing a sharp decline compared to 2023, which highlights a slowdown in economic momentum.
Main Point :- (i) The International Monetary Fund (IMF) maintained its global GDP growth forecast at 3.3% for both 2025 and 2026, a rate lower than the historical average of 3.7%, reflecting concerns about global economic challenges and uncertainties.
(ii) The global economy is grappling with issues such as inflationary pressures, geopolitical conflicts, and protectionist trade policies, which are expected to have a negative impact on global trade, investments, and economic growth.
(iii) The IMF has highlighted rising protectionist measures that could lead to increased tariffs, disruption of trade flows, and reduced investments. Additionally, geopolitical tensions, particularly in the Middle East and Ukraine, may affect global commodity prices, especially in the energy and food sectors, further exacerbating economic risks.
About IMF
Managing Director: Kristalina Georgieva
Headquarter : Washington DC
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