Summary:

Despite global uncertainties, India is expected to grow by 6.2–6.7% in FY25. Due to the ongoing tariff battle and unpredictable US trade policy, foreign organizations have lowered India's GDP forecasts by up to 0.5%. The IMF and World Bank now project growth of 6.2% and 6.3% for FY26, respectively, down from their previous forecasts. The Reserve Bank of India maintains a 6.5% growth prediction for FY25, while other agencies expect growth between 6.4% and 6.5%.

The Indian economy is projected to have grown by 6.5% in FY24. Despite a potential US recession and a slowdown in China, India remains the fastest-growing major economy. The Asian Development Bank has revised its FY25 growth forecast to 6.7%, down from 7%. Domestic challenges, particularly weak consumer sentiment, may limit the government's ability to counteract the impact of tariffs, possibly lowering GDP to 4% or less this year.

Source: IBEF

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